Breaking News: Nano Dimension acquires Markforged for $115 million

A major steal for Nano, and "no other way around" for Markforged

Nano Dimension announced today the acquisition of Markforged in a cash transaction valued at $115 million. Nano Dimension will pay Markforged shareholders $5.00 per share, representing a 71.8% premium over Markforged's stock price as of September 24, 2024.

In 2023, Markforged generated revenues of $93.8 million, with a gross margin of 47.4%. Nano Dimension expects that the merger with Markforged, along with its earlier acquisition of Desktop Metal, will bring the company annual revenues of $340 million and allow it to reach profitability. The transaction is expected to be finalized in the first quarter of 2025, pending approval from Markforged shareholders and necessary regulatory clearances.

Strategic Benefits of the Acquisition

The acquisition of Markforged will expand Nano Dimension’s product portfolio by adding FFF (fused filament fabrication) technology reinforced with continuous carbon fiber, which is used in the production of high-performance components. Nano Dimension believes that integrating Markforged’s technology will help it dominate the AM (additive manufacturing) market by offering a comprehensive range of solutions in various technologies such as FFF, binder jetting, digital light processing (DLP), and inkjet.

The acquisition also strengthens Nano Dimension’s position in metal 3D printing, recognized as a key growth area in the AM industry. Nano Dimension had already solidified its position in this segment with the acquisition of Desktop Metal, and adding Markforged further expands its offerings in metal component production solutions.

An additional advantage of the merger is access to Markforged’s advanced composite materials, including continuous fiber reinforcement technology. This allows for achieving metal-like strength in polymer applications, which enables weight reduction and increased durability of components.

Financial Stability and Operational Synergies

Nano Dimension expects that, following the merger with Markforged and Desktop Metal, the company will achieve financial stability, with approximately $475 million in cash and cash equivalents at the close of the transaction. The integration of both companies’ resources is anticipated to generate significant cost savings and improve operational efficiency, aiding further development in research and innovation.

The combination of Nano Dimension with Markforged is also a response to the growing AM market, which is rapidly expanding. Forecasts indicate that the global additive manufacturing market will grow from $6 billion in 2023 to $8 billion in 2024, with metal components being the primary growth area.

Approval of the Transaction

The transaction has been unanimously approved by the boards of both companies and is expected to be finalized in the first quarter of 2025, subject to all formal requirements, including Markforged shareholder approval and necessary regulatory clearances.

My Hot Take:

There is method to Nano Dimension CEO Yoav Stern’s madness!