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Markforged Holding Corporation saw its shares surge by 75% after Nano Dimension announced plans to acquire the company in a $115 million all-cash transaction. Under the terms of the agreement, Nano Dimension will purchase all outstanding shares of Markforged for $5.00 per share, a significant 71.8% premium over the stock’s average price leading up to the announcement. The merger, which has been approved by the boards of both companies, is expected to be finalized in the first quarter of 2025, pending regulatory and shareholder approvals.
This acquisition marks a pivotal step in Nano Dimension’s strategic growth plan to dominate the additive manufacturing (AM) sector. With Markforged’s 2023 revenue of $93.8 million and gross margins exceeding 47%, the deal is set to strengthen Nano Dimension’s position in the competitive landscape of 3D printing and digital manufacturing. The acquisition will combine Nano Dimension’s expertise in advanced materials and electronics with Markforged’s innovative composite and metal 3D printing technology.
In addition to the Markforged deal, Nano Dimension is also in the process of acquiring Desktop Metal, another prominent player in the AM space. Together, these acquisitions will create a combined company with a projected 2023 revenue of $340 million and a robust cash position of $475 million at closing. This increased scale and product diversification will allow Nano Dimension to offer an even broader portfolio of advanced manufacturing solutions across industries ranging from aerospace to automotive.
Nano Dimension CEO Yoav Stern highlighted the significance of this deal, calling it a bold step in the company’s journey toward becoming a global leader in digital manufacturing. He praised Markforged’s cutting-edge technology and its more than 15,000 installed systems worldwide. Stern emphasized that the merger would not only drive profitable growth but also offer exceptional value to shareholders, customers, and employees.
Shai Terem, CEO of Markforged, expressed excitement about the merger, stating that the combined resources of the two companies will further enhance their ability to serve high-growth industries with innovative solutions. Terem pointed out that Markforged’s strengths in composite materials and continuous fiber reinforcement will complement Nano Dimension’s metal-focused 3D printing technologies, providing customers with a comprehensive range of manufacturing solutions.
The acquisition is expected to bring numerous strategic and financial benefits. By expanding Nano Dimension’s product portfolio to include fused filament fabrication (FFF) and other high-performance additive manufacturing technologies, the company aims to capture a larger share of the growing AM market. The merger will also create synergies, streamline operations, and enhance research and development capabilities, positioning the combined company for long-term success.
This deal reflects the increasing consolidation in the additive manufacturing industry, as companies look to combine resources and scale up to meet growing demand for advanced production technologies. Nano Dimension’s acquisition of Markforged, along with its planned merger with Desktop Metal, solidifies its leadership in the AM space, particularly in metal and composite 3D printing applications.
With the completion of the Markforged acquisition, Nano Dimension expects to leverage the combined strength of its subsidiaries to drive revenue growth, improve profitability, and further innovate in the fast-evolving field of digital manufacturing. The company’s strong financial position and extensive product offerings make it well-positioned to capitalize on the rapid expansion of the AM market and Industry 4.0 initiatives across the globe.
As of 11:04 am the shares were trading 74.38% higher at $4.7605
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