For the most recent updates (as of April 25, 2025), see the tip of this text.
A Delaware courtroom just lately pressured Nano Dimension (Nasdaq: NNDM) to finalize its long-delayed acquisition of Desktop Steel. Now that the deal is formally closed, Nano is evaluating Desktop Steel’s subsequent steps.
On April 21, 2025, Nano introduced that Desktop Steel has began a proper strategic evaluation 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 every little thing from restructuring to potential asset gross sales, with specialists even suggesting chapter as a potential consequence.
This announcement follows a string of troubling updates about Desktop Steel’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 trade.
“We wouldn’t be stunned if chapter is a possible consequence for Desktop Steel,” says Cantor Fitzgerald analyst Troy Jensen. “We imagine Desktop Steel was trending towards insolvency, and so they wanted entry to Nano’s steadiness sheet to outlive. It seems to be 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 accordance with Jensen, the regulation agency that represented Desktop Steel in its merger dispute with Nano is requesting the courts to safe $34 million in Desktop Steel’s property to cowl practically $30 million in unpaid authorized charges, including much more stress from the authorized workforce.
Desktop Steel headquarters in Burlington, MA. Picture courtesy of 3DPrint.com.
What Occurred Final Month
Simply weeks in the past, the Delaware Chancery Court docket dominated that Nano needed to full its acquisition of Desktop Steel, 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 a substitute, it has taken a extra cautious path by asserting a strategic evaluation. As a part of this course of, Desktop Steel 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 Steel and whether or not it results in restructuring, divestments, or operational adjustments.
Binder jet metallic components made by Desktop Steel. Picture courtesy of Desktop Steel.
Stratasys Nonetheless within the Combine
In the meantime, the information has fueled hypothesis about what may occur to Desktop Steel’s property in a hypothetical state of affairs the place the corporate is damaged up or offered off. Jensen has instructed that Stratasys (Nasdaq: SSYS), now with extra cash available and a renewed board, may very well be a possible purchaser for a few of Desktop Steel’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 Steel in 2023. Again then, Stratasys introduced plans to merge with Desktop Steel in a $1.8 billion all-stock deal. Whereas the deal was structured as a merger, Stratasys shareholders have been anticipated to manage 59% of the mixed firm, with Desktop Steel shareholders holding the remaining 41%. Nonetheless, the proposal was in the end rejected by Stratasys shareholders. On the time, Desktop Steel had a market cap of about $700 million; as of March 5, 2025, it had dropped to simply $70 million. So any new deal would probably come at a severe discount for Stratasys.
“Stratasys now has roughly $264 million in money on their steadiness sheet, an extra $120 million in investments and is producing constructive money flows,” stated Jensen. “We imagine Stratasys needs all or components of Desktop Steel and has probably had discussions with Nano.”
Serving to gas that chance is Fortissimo Capital, a non-public fairness agency that just 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 method to get there quick is to purchase Nano’s 13.8% stake, says Jensen.
The analyst envisions this as a practical state of affairs: “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 Steel selections.
3D printed board. Picture courtesy of Nano Dimension.
The strategic evaluation of Desktop Steel is underway, however Nano has not specified a timeline or potential outcomes. For Nano, the transfer additionally comes throughout management adjustments. The corporate just lately appointed Ofir Baharav as the brand new CEO.
Ofir Baharav. Picture courtesy of Nano Dimension.
The manager took on the position in April 2025 and had beforehand served as Chairman of the Board and has intensive expertise in capital tools and additive manufacturing, together with management positions at Maxify and Stratasys.
This transition occurs when the AM trade continues 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 attributable to commerce points and recession fears. However stays optimistic about choose alternatives within the sector.
“We imagine the trade will stay challenged till progress returns,” he wrote, “however Stratasys is well-positioned to learn from consolidation.”
As for Nano, its subsequent steps will rely on how shortly and successfully it will possibly resolve the state of affairs with Desktop Steel and transfer ahead.
Replace – April 25, 2025:
On April 25, 2025, Nano Dimension finalized its $116 million acquisition of Markforged. This strategic transfer enhances Nano Dimension’s capabilities in AI-driven manufacturing and expands its presence in key industries comparable to aerospace, automotive, and medical know-how.
The deal was first introduced in September 2024 at $5 per share and confronted delays attributable to regulatory critiques and a lawsuit from Desktop Steel, which argued that the settlement violated its present merger cope with Nano and will increase regulatory considerations. As a part of the finished transaction, Markforged’s Chief Monetary Officer (CFO), Assaf Zipori, has now joined Nano Dimension as its new CFO.
Markforged brings with it a worldwide footprint of over 15,000 put in programs. In 2024, the corporate generated over $85 million in income with sturdy revenue margins, making it a invaluable addition to Nano Dimension’s portfolio. The acquisition is predicted to speed up progress and sharpen the corporate’s concentrate on profitability.
Subscribe to Our E mail Publication
Keep up-to-date on all the most recent information from the 3D printing trade and obtain info and gives from third social gathering distributors.
Add your 3D Fashions and get them printed shortly and effectively.
