Japanese optics and imaging multinational Nikon (TYO: 7731) announced that the company has closed on its acquisition of SLM Solutions (AM3D.DE), a German manufacturer of hardware for metal additive manufacturing (AM). The acquisition, totaling €622 million (~USD$675 million), was first announced by Nikon at the beginning of September, 2022.
Nikon continued on an AM sector spending spree in the two weeks following the announcement of its SLM acquisition. In addition to investing in Texas-based Hybrid Manufacturing Technologies, the Japanese conglomerate bought a stake in Optisys, a company headquartered in Utah that designs metal AM applications for antennas and other radio frequency (RF) components.
Earlier this week, in an editorial for 3DPrint.com titled, “Will Nikon’s SLM Solutions Deal Go through?”, AM consultant Tali Rosman addressed the acquisition’s arbitrage spread, the gap between the proposed share price and the current share price. The consultant pointed out that, although Nikon’s bid for SLM was at €20 a share and the stock was trading at around €17 at the time she wrote the article — yielding an arbitrage spread of around 15 percent — this is still only a bit higher than the 5-10 percent that is typical in such deals. Rosman concluded that, if the deal had truly been at risk, “we would have seen a bigger spread.”
Given the finalization of the deal, that analysis seems to have been sound. It is also worth pointing out that, given the high volatility of global markets last year, being “off” by 15 percent with four months lead time doesn’t seem like much of a misfire. That is especially the case, given the fact that it seems far more likely that AM companies are currently being undervalued rather than overvalued, above all concerning companies like SLM, with almost two decades of experience.
Aside from its willingness to put serious money behind it, the most notable aspect of Nikon’s burgeoning AM portfolio is its geographic reach. Combined with the company’s 2021 purchase of Southern California-based Morf3D, Nikon now has an AM foothold in at least three US states, as well as in Germany.
Considering that it is a Japanese company that is making all these moves, the significance of Germany, California, and Texas (Hybrid Manufacturing Technologies’ home base) to the global EV manufacturing supply chain can’t be overlooked. Nikon now seems to have put together many of the necessary ingredients for printing both semiconductors and automotive components, so anyone interested in the progress of AM for transportation should keep a close eye on how the company’s advanced manufacturing portfolio progresses from here.
Images courtesy of SLM Solutions
Subscribe to Our Email Newsletter
Stay up-to-date on all the latest news from the 3D printing industry and receive information and offers from third party vendors.
You May Also Like
3DPOD Episode 190: Generative Design for 3D Printing with Novineer CEO Ali Tamijani
Ali Tamijani, a professor in the Department of Aerospace Engineering at Embry-Riddle Aeronautical University, has an extensive background in composites, tool pathing, and the development of functional 3D printed parts,...
3DPOD Episode 189: AMUG President Shannon VanDeren
Shannon VanDeren is a consultant in the 3D printing industry, focusing on implementation and integration for her company, Layered Manufacturing and Consulting. For nearly ten years, she has been involved...
3DPOD Episode 188: Clare Difazio of E3D – Growing the Industry, and Growing With the Industry
Clare DiFazio’s journey into the 3D printing industry was serendipitous, yet her involvement at critical moments has significantly influenced the sector. Her position as Head of Marketing & Product Strategy...
Printing Money Episode 15: 3D Printing Markets & Deals, with AM Research and AMPOWER
Printing Money returns with Episode 15! This month, NewCap Partners‘ Danny Piper is joined by Scott Dunham, Executive Vice President of Research at Additive Manufacturing (AM) Research, and Matthias Schmidt-Lehr,...