DM - Nano Dimension's Offer Is Bad For Desktop Metal And Stratasys

2024-07-08 12:38:44 ET

Summary

• Nano Dimension plans to acquire Desktop Metal in an all-cash deal, potentially offering as little as $4.07 per share to shareholders.
• The deal could negatively impact Nano Dimension's attempt to acquire Stratasys given that it will weaken Nano Dimension's purchasing power.
• I believe the deal has a high probability of falling through given that it offers Desktop Metal shareholders little and doesn't really help Nano Dimension achieve its objectives.

Nano Dimension ( NNDM ) plans on acquiring Desktop Metal ( DM ) in an all-cash deal for $5.5D per share. The deal has conditions though and could see Desktop Metal shareholders receive as little as $4.07 per share. There isn't much in the deal for Desktop Metal shareholders, unless they believe that the company is on a path to bankruptcy. The acquisition would help provide Nano Dimension with scale, but the strategic logic is questionable, and Nano Dimension’s losses will remain large after the deal is complete....

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