Nano Dimension doesn’t seem to want Desktop Metal, but who else might?
The funny thing about this headline is that it could have been written last year, when Nano Dimension announced that it was acquiring Desktop Metal, or the year before that, when Stratasys said the same thing. Now, after being forced to complete the acquisition by a Delaware court ruling, Nano Dimension has stated that it has “commenced a process to explore all available strategic alternatives to address [Desktop Metal’s] liabilities and liquidity needs.”
Consensus among the corporate jargon translators is that this is code for either selling or restructuring Desktop Metal via Chapter 11. The latter option would be tragic, though certainly not unprecedented in this industry, but the former raises a much more interesting question:
Supposing Nano Dimension is looking to sell Desktop Metal, who should buy it?
Here are a few possibilities that spring to mind based entirely upon speculation and no insider information whatsoever.
Stratasys
We already know that Stratasys tried acquiring Desktop Metal once before, only to be defeated by Nano Dimension’s objection as Stratasys’ largest shareholder at the time. If Nano Dimension is experiencing buyer’s remorse, why not turn around and offer Desktop Metal to the original bidder?
In fact, Stratasys has coincidentally just closed a $120M investment by Fortissimo Capital, a move which gave the Israeli private equity fund 14% of Stratasys’ issued and outstanding ordinary shares, putting its total holdings at 15.5% of the company. Also coincidentally, that investment means that Nano Dimension is no longer Stratasys’ largest shareholder.
It would certainly be an interesting twist of fate if Desktop Metal ended up being acquired by Stratasys after all. Hopefully (at least for the parties involved) not so interesting that it garners the attention of the Federal Trade Commission.
3D Systems
If you read through a history of the 3D printing industry, you’re bound to see the phrase “acquired by 3D systems” crop up numerous times over the past four decades. Granted, a lot of those acquired companies were on the software side, but there are also examples of 3D Systems acquiring hardware manufacturers to broaden its technology portfolio. These include Titan Robotics in 2022, which became the basis for the company’s EXT Titan line of pellet extrusion machines, and Wematter in 2023 for its selective laser sintering (SLS) technology.
However, there are two points that count against this possibility.
The first is that 3D Systems hasn’t announced an acquisition since Wematter and, indeed, the most recent M&A news from the company has been the sale of the Geomagic software portfolio to Hexagon for more than double what 3D Systems originally paid back in 2013, no less. The second point concerns technology: the company already has a variety of metal 3D printers on offer. So, unlike Stratasys, it’s not clear that acquiring Desktop Metal would substantially expand the 3D Systems portfolio, at least in terms of material options.
Bambu Lab
Okay, hear me out on this one.
Bambu Lab is the dark horse of the 3D printing industry, growing rapidly and revitalizing a market – hobbyists, small businesses, and other “maker” types – that many believed was already oversaturated. Moreover, the company has not shied away from expanding its technology portfolio, with the latest H2D machine incorporating laser cutting and engraving capabilities. If Bambu Lab really wants us to “rethink personal manufacturing” then, sooner or later, it will need to get into metals.
Why not acquire a US company and, as a bonus, get a way around those pesky tariffs?
I’ll freely admit that it’s not nearly as simple as all that, especially when China is reportedly restricting companies from investing in the US as leverage for trade negotiations. Still, with the rate Bambu Lab has been growing, not to mention the revenue it’s generating, it should easily have the capital to acquire Desktop Metal. Plus, if there’s any metal additive manufacturing technology that fits with the personal manufacturing ethos, it’s Desktop Metal’s binder jetting.
I won’t say Bambu Lab is as likely as Stratasys or 3D Systems to make an offer on Desktop Metal, but the Chinese company has surprised us all before, and this possibility at least gets points for being, in my opinion, the most interesting one.
