Nano Dimension Evaluates Desktop Metal Post-Takeover, Completes Acquisition of Markforged

For the latest updates (as of April 25, 2025), see the end of this article.

A Delaware court recently forced Nano Dimension (Nasdaq: NNDM) to finalize its long-delayed acquisition of Desktop Metal. Now that the deal is officially closed, Nano is evaluating Desktop Metal’s next steps.

On April 21, 2025, Nano announced that Desktop Metal has started a formal strategic review to explore options for managing its heavy debt and cash problems. The company, once a hyped pioneer in metal 3D printing, is now considering everything from restructuring to potential asset sales, with experts even suggesting bankruptcy as a possible outcome.

This announcement follows a string of troubling updates about Desktop Metal’s financial health. At the end of Q3 2024, the company had only $30 million in cash but carried $113 million in long-term debt. That imbalance raised alarm bells throughout the industry.

“We wouldn’t be surprised if bankruptcy is a potential outcome for Desktop Metal,” says Cantor Fitzgerald analyst Troy Jensen. “We believe Desktop Metal was trending toward insolvency, and they needed access to Nano’s balance sheet to survive. It looks like an option for Nano is to let them fail as a subsidiary and sell off the assets in bankruptcy court.”

What’s more, according to Jensen, the law firm that represented Desktop Metal in its merger dispute with Nano is requesting the courts to secure $34 million in Desktop Metal’s assets to cover nearly $30 million in unpaid legal fees, adding even more pressure from the legal team.

What Happened Last Month

Just weeks ago, the Delaware Chancery Court ruled that Nano had to complete its acquisition of Desktop Metal, stating that Nano had “materially breached” the merger agreement by “failing to use reasonable best efforts to obtain regulatory approval.” The decision concluded a months-long legal dispute over Nano’s hesitation to finalize the deal.

Despite the court-mandated acquisition, Nano hasn’t invested heavily in stabilizing the company. Instead, it has taken a more cautious path by announcing a strategic review. As part of this process, Desktop Metal appointed experienced restructuring expert Robert Warshauer to its board and brought in investment banker Piper Sandler and FTI Consulting, a global financial advisory firm specializing in corporate turnaround strategies, as financial advisers.

The move raises questions about what lies ahead for Desktop Metal and whether it leads to restructuring, divestments, or operational changes.

Stratasys Still in the Mix

Meanwhile, the news has fueled speculation about what could happen to Desktop Metal’s assets in a hypothetical scenario where the company is broken up or sold off. Jensen has suggested that Stratasys (Nasdaq: SSYS), now with more cash on hand and a renewed board, could be a potential buyer for some of Desktop Metal’s business units, like dental, sand, or materials.

Stratasys is now in a much stronger financial position than when it tried to merge with Desktop Metal in 2023. Back then, Stratasys announced plans to merge with Desktop Metal in a $1.8 billion all-stock deal. While the deal was structured as a merger, Stratasys shareholders were expected to control 59% of the combined company, with Desktop Metal shareholders holding the remaining 41%. However, the proposal was ultimately rejected by Stratasys shareholders. At the time, Desktop Metal had a market cap of about $700 million; as of March 5, 2025, it had dropped to just $70 million. So any new deal would likely come at a serious bargain for Stratasys.

“Stratasys now has roughly $264 million in cash on their balance sheet, an additional $120 million in investments and is generating positive cash flows,” said Jensen. “We believe Stratasys wants all or parts of Desktop Metal and has likely had discussions with Nano.”

Helping fuel that possibility is Fortissimo Capital, a private equity firm that recently invested $120 million into Stratasys and now holds 18.2% of the company. Their agreement allows them to increase their stake to as much as 35%. And one way to get there fast is to buy Nano’s 13.8% stake, says Jensen.

The analyst envisions this as a realistic scenario: “It wouldn’t surprise me if Fortissimo tries to acquire Nano’s 9.7 million Stratasys shares.”

That move would consolidate Fortissimo’s influence over Stratasys and give them even more leverage in any Desktop Metal decisions.

The strategic review of Desktop Metal is underway, but Nano has not specified a timeline or potential outcomes. For Nano, the move also comes during leadership changes. The company recently appointed Ofir Baharav as the new CEO.

The executive took on the role in April 2025 and had previously served as Chairman of the Board and has extensive experience in capital equipment and additive manufacturing, including leadership positions at Maxify and Stratasys.

This transition happens when the AM industry is still struggling with weak system demand and macroeconomic pressure. Jensen noted that Q1 demand was “still somewhat challenging,” with cautious outlooks for the rest of 2025 due to trade issues and recession fears. But remains optimistic about select opportunities in the sector.

“We believe the industry will remain challenged until growth returns,” he wrote, “but Stratasys is well-positioned to benefit from consolidation.”

As for Nano, its next steps will depend on how quickly and effectively it can resolve the situation with Desktop Metal and move forward.

Update – April 25, 2025:

On April 25, 2025, Nano Dimension finalized its $116 million acquisition of Markforged. This strategic move enhances Nano Dimension’s capabilities in AI-driven manufacturing and expands its presence in key industries such as aerospace, automotive, and medical technology.

The deal was first announced in September 2024 at $5 per share and faced delays due to regulatory reviews and a lawsuit from Desktop Metal, which argued that the agreement violated its existing merger deal with Nano and could raise regulatory concerns. As part of the completed transaction, Markforged’s Chief Financial Officer (CFO), Assaf Zipori, has now joined Nano Dimension as its new CFO.

Markforged brings with it a global footprint of over 15,000 installed systems. In 2024, the company generated over $85 million in revenue with strong profit margins, making it a valuable addition to Nano Dimension’s portfolio. The acquisition is expected to accelerate growth and sharpen the company’s focus on profitability.