Last week 3D Printing Industry published an update on the Stratasys, 3D Systems, Nano Dimension, and Desktop Metal merger and acquisition activity.
Among the sources for that article were several reports produced by analysts on the M&A activity.
Nano Dimension’s Chairman and CEO has written to provide a response; specifically, Yoav Stern addresses the report produced by Lake Street Capital. His email is quoted below.
Yoav Stern begins by responding to the likelihood of the Nano Dimension tender completing.
Email from Yoav Stern
“The success in the Tender of Nano to buy 51% of Stratasys is not dependent on,” on upcoming Israeli court decisions regarding the legality….of Nano shareholder vote to remove several board and management team members.”
There is an Israeli Court (which is handling that issue of “vote legality”) decision, publicly published, from April 16th, 2023, section 110 ( attached) that states clearly that “Nano Dimension is allowed to run its business in the ordinary course including M&A transactions and specifically including completing the Stratasys Transaction”
“The analyst urges Nano to realize that institutional investors do not support their attempt to acquire Stratasys.” This is totally inaccurate. We spoke with at least 25 different institutional and other shareholders of Stratasys, and most of them were ready to support our tender – subject to a price adjustment up – to be higher than $18.
“Past attempts seen as not serious due to the large spread between the offered and trading price of Stratasys’ stock”. This again is totally inaccurate because when we tendered the first time at $18 at end of May 2023, the share was traded at less than $14 and it went up following our tender. Since then, we have increased it to $20.05
“A merger between Stratasys and Nano is not expected to yield the same scale efficiencies as potential mergers with Desktop Metal or 3D Systems would.” And in other places, Jensen is quoted as claiming the Nano is only an SMT company with no success of its AME business.
To quote our financial statements and news releases:
Nano Dimension:
Revenue
- 2020- approx. $5M
- 2021- approx. $10M
- 2022 – $43.4M
- 2023 – run rate of $60M (based on Q1/2023)
Gross Margin – 47% (2023)
Nano has 7 product lines – all integrated – and all selling to the same vertical markets like Stratasys.
AME machines (over 45 customers, 5-7 Western Armies, 4-5 Western Secret Services, 5 largest Defense Contractors, Space customers, and more civilian customers).
AM ceramics and metal (DLP) machines (approx. hundred machines sold).
AM micro-mechanic polymers (DLP) machines (Machines sold to Western Secret Services and Part Manufacturers).
Additive Electronic Assembly Machines (thousands of machines sold)
AI – Deep Learning Quality Algorithm Engines for Nano’s AM and other companies’ industrial applications.
Ink Systems and Software for 2D-3D printing sub-systems.
Materials development and production for Additive electronics.
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Featured image shows additive manufactured electronics (AME) produced using one of Nano Dimension’s DragonFly machines. Photo via Nano Dimension.
