A Delaware courtroom lately pressured Nano Dimension (Nasdaq: NNDM) to finalize its long-delayed acquisition of Desktop Metallic. Now that the deal is formally closed, Nano is evaluating Desktop Metallic’s subsequent steps.
On April 21, 2025, Nano introduced that Desktop Metallic has began a proper strategic assessment to discover choices for managing its heavy debt and money issues. The corporate, as soon as a hyped pioneer in metallic 3D printing, is now contemplating all the things from restructuring to potential asset gross sales, with consultants even suggesting chapter as a doable final result.
This announcement follows a string of troubling updates about Desktop Metallic’s monetary well being. On the finish of Q3 2024, the corporate had solely $30 million in money however carried $113 million in long-term debt. That imbalance raised alarm bells all through the business.
“We wouldn’t be stunned if chapter is a possible final result for Desktop Metallic,” says Cantor Fitzgerald analyst Troy Jensen. “We imagine Desktop Metallic was trending towards insolvency, they usually wanted entry to Nano’s stability sheet to outlive. It seems like an possibility for Nano is to allow them to fail as a subsidiary and unload the property in chapter courtroom.”
What’s extra, in line with Jensen, the legislation agency that represented Desktop Metallic in its merger dispute with Nano is requesting the courts to safe $34 million in Desktop Metallic’s property to cowl practically $30 million in unpaid authorized charges, including much more stress from the authorized staff.
What Occurred Final Month
Simply weeks in the past, the Delaware Chancery Courtroom dominated that Nano needed to full its acquisition of Desktop Metallic, stating that Nano had “materially breached” the merger settlement by “failing to make use of cheap finest efforts to acquire regulatory approval.” The choice concluded a months-long authorized dispute over Nano’s hesitation to finalize the deal.
Regardless of the court-mandated acquisition, Nano hasn’t invested closely in stabilizing the corporate. As an alternative, it has taken a extra cautious path by asserting a strategic assessment. As a part of this course of, Desktop Metallic appointed skilled restructuring skilled Robert Warshauer to its board and introduced in funding banker Piper Sandler and FTI Consulting, a worldwide monetary advisory agency specializing in company turnaround methods, as monetary advisers.
The transfer raises questions on what lies forward for Desktop Metallic and whether or not it results in restructuring, divestments, or operational modifications.
Binder jet metallic elements made by Desktop Metallic. Picture courtesy of Desktop Metallic.
Stratasys Nonetheless within the Combine
In the meantime, the information has fueled hypothesis about what might occur to Desktop Metallic’s property in a hypothetical situation the place the corporate is damaged up or offered off. Jensen has urged that Stratasys (Nasdaq: SSYS), now with extra cash readily available and a renewed board, might be a possible purchaser for a few of Desktop Metallic’s enterprise items, like dental, sand, or supplies.
Stratasys is now in a a lot stronger monetary place than when it tried to merge with Desktop Metallic in 2023. Again then, Stratasys introduced plans to merge with Desktop Metallic in a $1.8 billion all-stock deal. Whereas the deal was structured as a merger, Stratasys shareholders have been anticipated to regulate 59% of the mixed firm, with Desktop Metallic shareholders holding the remaining 41%. Nevertheless, the proposal was finally rejected by Stratasys shareholders. On the time, Desktop Metallic had a market cap of about $700 million; as of March 5, 2025, it had dropped to only $70 million. So any new deal would doubtless come at a severe cut price for Stratasys.
“Stratasys now has roughly $264 million in money on their stability sheet, a further $120 million in investments and is producing optimistic money flows,” mentioned Jensen. “We imagine Stratasys needs all or elements of Desktop Metallic and has doubtless had discussions with Nano.”
Serving to gas that risk is Fortissimo Capital, a personal fairness agency that lately invested $120 million into Stratasys and now holds 18.2% of the corporate. Their settlement permits them to extend their stake to as a lot as 35%. And one technique to get there quick is to purchase Nano’s 13.8% stake, says Jensen.
The analyst envisions this as a practical situation: “It wouldn’t shock me if Fortissimo tries to amass Nano’s 9.7 million Stratasys shares.”
That transfer would consolidate Fortissimo’s affect over Stratasys and provides them much more leverage in any Desktop Metallic choices.
3D printed board. Picture courtesy of Nano Dimension.
The strategic assessment of Desktop Metallic is underway, however Nano has not specified a timeline or potential outcomes. For Nano, the transfer additionally comes throughout management modifications. The corporate lately appointed Ofir Baharav as the brand new CEO.
Ofir Baharav. Picture courtesy of Nano Dimension.
The manager took on the function in April 2025 and had beforehand served as Chairman of the Board and has in depth expertise in capital tools and additive manufacturing, together with management positions at Maxify and Stratasys.
This transition occurs when the AM business remains to be scuffling with weak system demand and macroeconomic stress. Jensen famous that Q1 demand was “nonetheless considerably difficult,” with cautious outlooks for the remainder of 2025 resulting from commerce points and recession fears. However stays optimistic about choose alternatives within the sector.
“We imagine the business will stay challenged till development returns,” he wrote, “however Stratasys is well-positioned to learn from consolidation.”
As for Nano, its subsequent steps will depend upon how rapidly and successfully it might resolve the state of affairs with Desktop Metallic and transfer ahead.
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