Desktop Metal sues Nano Dimension again, and adds Markforged to the lawsuit
The Atomic Layers: S6E5 (00152)
Atomic Layer of the Day:
Desktop Metal has gone so far south that it’s on the verge of reaching the gates of hell. I know all this is motivated by deep desperation, but c’mon… people are watching.
On December 20, 2024, Desktop Metal filed a lawsuit against Nano Dimension, seeking court assurances that the company would not back out of the acquisition deal announced on July 3, 2024, and that it would make every possible effort to complete the transaction.
The latter point specifically relates to issues with obtaining approval from the Committee on Foreign Investment in the United States (CFIUS). As I mentioned in an article last year, the problem with securing U.S. government approval stems from concerns over the transfer of Desktop Metal’s technology (as well as EnvisionTEC’s, ExOne’s, and others’) to Israel. This led to regulatory conditions proposed by CFIUS, which Nano Dimension is resisting.
However, this issue may have an entirely different context—it could serve as an excuse for Nano Dimension’s new management to nullify the acquisition agreement. The entire situation is detailed here:
Fast forward to Friday, January 3, 2025. Desktop Metal announced two new developments:
The Delaware court granted Desktop Metal’s request to expedite the proceedings, setting a trial date for February 24, 2025.
On December 31, 2024, Desktop Metal filed a second lawsuit against Nano Dimension, this time involving Markforged.
In the new lawsuit, Desktop Metal accuses Nano Dimension of intending to acquire Markforged for $115 million (announced on September 25, 2024), which could delay or block the merger with Desktop Metal.
According to the merger agreement, Nano Dimension had committed not to engage in other acquisitions that might affect regulatory approval of its merger with Desktop Metal. Originally, Desktop Metal expected the merger with Nano Dimension to conclude before the acquisition of Markforged. However, delays in obtaining approval from CFIUS have changed the timeline. Desktop Metal claims that the acquisition process for Markforged could increase the risk of government authorities blocking or delaying the merger.
In summary: Desktop Metal just wants to be acquired. Everything else seems irrelevant.
And what is “everything else”? Broadly speaking, it’s the concept of corporate governance in the newly created entity—a company composed of Nano Dimension and its acquired firms, Desktop Metal (and its acquisitions), and Markforged (and its acquisitions).
Because, after a happy resolution of these legal issues, this new entity is supposed to somehow function cohesively.
Except it won’t. Not after lawsuits and the internal and external battles between factions and sides within these organizations.
At this point, even if Desktop Metal “wins,” it loses. There’s no way to piece this puzzle back together. The fragments are damaged, broken, or missing.
Right now, it’s merger or death.
Nano Dimension has yet to respond. Markforged limited itself to a brief comment:
While Markforged cannot make an assessment as to the outcome of the lawsuit at this time, Markforged believes that Desktop Metal’s claims and requested relief against Markforged are without merit and intends to vigorously defend against them.
Atomic Layer from the Past:
01-05-2015: Voxel8 unveiled the first 3D printer capable of printing both electrical circuits and enclosures simultaneously.
News & Gossip:
Last day of the week, so here’s a brief stock market summary. BLT continues its downward slide, nearing the market valuation of Farsoon Technologies for the first time in a long while. Currently, BLT’s market valuation stands at $1.491 million, while Farsoon is at $1.313 million. Last year, the gap between them was $300–400 million.
Meanwhile, the new year has seen a rise in the stock price of Materialise (valued at $453 million), which is now nearly on par with 3D Systems (valued at $460 million).
I know this isn’t the same scale at all, but something interesting happened. For the past six months, shares of Polish company Zortrax have been in a steady decline, hitting an embarrassing low of PLN 0.06 per share. However, since Christmas, the stock has been climbing, reaching as high as PLN 0.13 per share. This is the best performance since June 2024, and it’s worth noting that in May, the stock was at PLN 0.15. Maybe something is in the works behind the curtains? Zortrax’s current market valuation is PLN 14.45 million (~€3.4 million). Its book value stands at PLN 41.46 million (~€9.6 million).