An ominous statement from Nano Dimension puts the future of Desktop Metal in peril.
Desktop Metal was a promising startup a few years ago, promising the ability to more easily print metal parts. The company soared to an enormous valuation and was able to acquire several notable 3D print companies, including ExOne and EnvisionTEC. But then it was realized their technology wasn’t going to take over the manufacturing market, and valuations plummeted.
Meanwhile, Nano Dimension found itself flush with cash and had been acquiring a number of other 3D print companies. They struck a deal with Desktop Metal to merge operations and were in the process of doing so.
Then a shareholder revolt at Nano Dimension deposed the board and management, replacing them with others that had less interest in acquiring companies. The shareholders felt that the cash could have been spent more wisely.
However, there was still that ongoing merger with Desktop Metal. Fortunately for Desktop Metal, they had launched a lawsuit a couple of months earlier, which asked the court to force Nano Dimension to complete the deal. When the case hit the court, the ruling forced Nano Dimension to immediately complete the deal, which they did only days later.
This meant that the new management at Nano Dimension had themselves a Desktop Metal subsidiary that they really didn’t want. Many of us were curious as to what Nano Dimension would do with the new addition, as it came with a number of powerful 3D print technologies.
Now we know the answer. In a very short press release, Nano Dimension announced:
“Desktop Metal, a subsidiary of Nano Dimension, has commenced a process to explore all available strategic alternatives to address its liabilities and liquidity needs. Desktop Metal has appointed Robert Warshauer to its Board of Directors and engaged Piper Sandler & Co. and FTI Consulting, Inc. as financial advisers.
No assurances can be given as to the outcome or timing of the strategic review process. Nano Dimension plans to share additional details during its upcoming 2024 financial results and 2025 outlook call, expected to be held in late April 2025.”
What does this tell us? First, it seems that Desktop Metal was likely not financially viable at the time of sale. That’s not too surprising, given the downturn in the market.
More importantly, the announcement seems to suggest that Nano Dimension management has little interest in Desktop Metal and its associated technologies, and that they are quite willing to divest them as best they can. It sounds like they may attempt to spin out the company, possibly taking a loss by doing so, or selling off its assets.
The asset sale is most interesting to me, as it might unlock some of the acquired tech from Desktop Metal’s own acquisitions. These would include technology from ExOne, EnvisionTEC, Aerosint, Forust, Aidro, Meta Additive, and Freshmade 3D.
It’s possible that one of the larger players in the space might want to take a run at a new market by adopting one of these technologies. On the other hand, if Desktop Metal was unable to make a go of them, then maybe others believe the same. It could be that all of these technologies simply disappear into the forgotten history of 3D printing.
That would be sad, given the tremendous amount of effort put in by all of those in the companies that led up to this acquisition. However, it’s also correct: the market speaks, and tech that isn’t suitable or financially viable may fall to the side.
Via Nano Dimension
