Farewell to Mr. Yoav Stern - the most polarizing figure in the AM industry
The Atomic Layers: S5E27 (00143)
Atomic Layer of the Day:
Yesterday, I wrote an article detailing the latest chapter in the ongoing dispute between Desktop Metal and Nano Dimension over their prolonged merger process. In the article, I briefly touched on the unresolved status of Yoav Stern, who, at the time of writing, was still officially serving as Nano Dimension's CEO.
But this is the AM industry. An hour or two after the article was published, Nano Dimension announced that Yoav Stern had been dismissed as CEO effective immediately, with Julien Lederman—who has served as Vice President of Corporate Development since March 2021—stepping in as interim CEO.
In principle, none of this was particularly surprising, except for one detail: the timing. The change occurred on the second day of Christmas.
Brutal.
Then again, anyone who’s spent time in the AM industry knows it’s not exactly known for being easy or forgiving. Holidays or not…
“Here’s your termination notice. Sign on the dotted line. Yeah, thanks, goodbye. Would you close the door behind while you’re leaving?”
And so, like it or not, I find myself returning yet again to the topic of Nano Dimension—and this time, Murchinson, the firm that orchestrated the dismissal of poor Yoav Stern.
But is Yoav Stern really so “poor”? Yes, firing someone during the Christmas season is harsh, and no one should have to experience that. But does that alone make him deserving of pity?
This morning, I took the time to comb through around 20 industry articles, press releases, and commentary about Yoav Stern’s tenure as Nano Dimension’s CEO.
VERY IMPORTANT DISCLAIMER!!!
Before anyone accuses me of hating, exploiting others’ misfortune, or building a career on negative stories, let me make this clear:
I do not know Mr. Yoav Stern. I have never seen him in person. I have never exchanged words with him, either in conversation, email, or text message.
It is entirely possible that Yoav Stern does not know I exist. If that is the case, I am perfectly fine with it.
The knowledge and insights I have about him come from industry articles (mostly from TCT Magazine), official press releases, and now-deleted videos that Yoav Stern himself published on YouTube during Nano Dimension’s 2023 attempts to acquire Stratasys.
So, I am only describing his business persona. I fully acknowledge the possibility that his “family & friends” persona could be entirely different. Perhaps in business, he is ruthless, but outside of it, he is a loving husband, a wonderful father, and a cherished grandfather.
And that I'm writing just about the negatives? Hey, I wasn't the one who fired him on Christmas!
Yoav Stern & Nano Dimension (2019-2024)
Yoav Stern was appointed as the CEO and Director of Nano Dimension on December 5, 2019. Guess who appointed him to this position? None other than Avi Reichental himself!
Described as a “proven turnaround executive” by Nano Dimension’s Board Chairman Avi Reichental, Stern joins the team with a track record as CEO and Chairman in transitioning companies into scalable growth, and as an investor in advanced technology companies specialising in machine vision, fiber optics, defense-tech, communication solutions, aerospace, and homeland security. Reichental commented that Stern is “exactly what Nano Dimension needs at this stage”.
Source: www.tctmagazine.com
In the early stages, it seemed like the best choice Nano Dimension could have ever hoped for. Stern’s leadership coincided with a period of rapid expansion and strategic acquisitions aimed at positioning the company as a global technology leader. Under Stern’s guidance:
Nano Dimension raised $1.5 billion in capital, reportedly with the confidence of U.S. institutional investors.
The company expanded its technological portfolio, leveraging AI to enhance 3D-printed electronics manufacturing processes.
Revenues increased substantially, with 2022 preliminary figures showing a 1,180% increase from 2020.
Nano Dimension also pursued a series of acquisitions aimed at strengthening its position in the advanced 3D printing technology market. Notable acquisitions included:
NanoFabrica (revenue: $10.5 million)
Global Inkjet Systems (revenue: $10 million)
Admatec/Formatec (revenue: $5.3 million)
Essemtec (revenue: $29.7 million)
DeepCube (no revenue at the time of acquisition).
Additionally, Nano Dimension acquired over 12% of the shares in Stratasys, one of the most prominent companies in the history of AM industry. Later he made—his infamous now—run for the rest of the company.
That didn’t work out. But a year later, Stern once again shocked the AM world by announcing the acquisition of Desktop Metal—the same company he had previously harshly criticized. Then, he went a step further and announced the acquisition of Desktop Metal’s biggest competitor, Markforged.
But those stories are well known to you all. In any case, you can read my previous articles about it:
Unfortunatelly, while these acquisitions seemed to enhance Nano Dimension's market position, the company's stock value declined, sparking dissatisfaction among shareholders, particularly its largest investor, Murchinson Ltd.
The shareholders began to express concerns about:
capital allocation—critics claimed that Stern has pursued a "value-destructive acquisition spree," allegedly acquiring companies that underperformed post-acquisition
share price decline—during Stern’s tenure, Nano Dimension’s share price plummeted by over -77%
corporate governance—allegations of cronyism and questionable governance practices have been raised; notably, Murchinson has accused Stern of manipulating the company’s director class system to entrench his control.
The conflict with Murchinson
The relationship between Yoav Stern and Murchinson Ltd., its largest shareholder, has devolved into a public and acrimonious battle. Murchinson, led by Marc Bistricer, has called for a reconstitution of Nano Dimension’s board, citing what it views as Stern’s mismanagement and governance failures.
From the other hand, the fund has been accused by Nano Dimension of mounting a hostile takeover bid for the company’s cash reserves.
Below are key aspects of the dispute over the years (2022-2024):
Murchinson’s perspective:
Murchinson has proposed removing four current board members, including Stern, and appointing two independent directors.
The fund argued that Nano Dimension’s leadership has employed “entrenchment maneuvers,” such as adopting a "poison pill" and filing for dilutive share issuance, to sideline shareholder interests.
Murchinson has highlighted the significant drop in Nano Dimension’s share price and poor ROI as evidence of Stern’s ineffective leadership.
Nano Dimension’s counterclaims:
Nano Dimension has accused Murchinson of acting in bad faith, driven by a short-term profit motive at the expense of long-term shareholder value.
Murchinson had a history of past run-ins with the U.S. Securities and Exchange Commission (SEC), including fines exceeding $8 million for securities law violations.
Stern argued that Murchinson’s ultimate goal is to liquidate Nano Dimension’s cash reserves, potentially dismantling the company.
It’s undeniable that one of the main flashpoints was Yoav Stern’s personality. He was far from the typical corporate bureaucrat—he was highly expressive and didn’t shy away from sharing “colorful opinions.” While some saw this as a sign of raw honesty and truthfulness, others perceived him as a raging eccentric.
In 2023, amid the turmoil surrounding Nano Dimension's attempted acquisition of Stratasys, Stratasys issued a letter to its shareholders, in which it brought up an old story involving Stern's previous company, Magal:
Be aware: Mr. Stern’s destructive behavior is nothing new.
Mr. Stern was removed as interim president and CEO of Magal Security Systems in 2009 after causing what Magal described as “an almost irreparable damage in the morale of the remaining employees” who “operated in a hostile environment and were terrified by his managerial style.”
In a letter to shareholders regarding a challenge led by Mr. Stern to Magal’s Board, Magal further noted that “After Mr. Stern joined the Company, he clearly indicated to certain employees that his real intention was to cause a management buy-out where the shares of the Company would be purchased at a low price by management.”
Mr. Stern also reportedly attempted to extort Magal’s largest shareholder in order to prevent him from voting at the shareholder meeting on Mr. Stern’s board challenge.
Source: www.businesswire.com
The situation was certainly not helped by the videos Stern posted with almost manic frequency on Nano Dimension’s official YouTube channel, where he openly ranted about Murchinson, Stratasys, and Desktop Metal.
Unfortunately (for a historical perspective), most videos have since been deleted or turned private. All I have left is the following screenshot...
So Stern’s management style has highly polarized stakeholders. On one hand, he was credited with spearheading an ambitious growth strategy that significantly increased Nano Dimension’s revenue. On the other hand, his detractors point to his aggressive acquisition strategy and allegations of governance issues as major liabilities.
Critics, including Murchinson, have characterized Stern as a "value destroyer" who prioritizes personal and insider interests over those of shareholders. The fund has alleged that Stern’s leadership is marked by a lack of transparency and accountability, citing actions such as the unilateral adoption of anti-takeover measures.
But Murchinson itself is by no means a spotless, humble investment fund solely concerned with the interests of its shareholders.
Murchinson is a Toronto-based investment fund. And it is no stranger to controversy either. Past SEC investigations revealed illegal practices, where the fund was fined for falsely reporting short positions as long positions. Also some accusations of deceptive practices aimed at inflating returns have tarnished Murchinson’s reputation.
So don't be fooled. This story doesn't have a "good guy and bad guy." It has characters who move the plot along...
Life after Stern - what’s next with Desktop Metal and Markforged?
As I wrote in the previous article, I don't think Nano Dimension under its new management intends to pursue the acquisition of both companies. Their true intentions remain unknown.
It could involve what Stern mentioned—draining the company's funds and driving it toward collapse.
Alternatively, it could reflect a more rational assessment of the situation, halting the company from proceeding with a potentially disastrous merger.
Nano Dimension might also wait and delay the finalization of the merger until Desktop Metal collapses, at which point they could either acquire select assets for "pennies on the dollar" or abandon the acquisition altogether.
The Markforged situation is entirely uncertain. The focus has been overshadowed by the Desktop Metal matter and the turbulence within Nano Dimension itself.
Additionally, let’s not forget that Julien Lederman—Nano Dimension’s CEO as of yesterday—is only an interim CEO. We’re still awaiting the appointment of a permanent CEO. I doubt any significant decisions will be made before the selection.
Atomic Layer from the Past:
12-27-2023: Creality underwent a complete rebranding.
News & Gossip:
Still no other news or gossip. But the Nano Dimension drama is fair enough for me…