Why Nano Dimension Stock Is Rising Today

Nano Size (NNDM 8.04%) stocks post big gains in Wednesday trading. The company’s stock price was up 8.6% as of 2:00 PM ET. The 3D printing semiconductor stock rose as much as 10% earlier in the trading day.

Shares of Nano Dimension are rising on news that the company is in the process of being acquired Markforged — a specialist in industrial 3D printing. The news follows Nano Dimension’s announcement in July that it would acquire Desktop Metal.

Nano Dimension is growing through acquisitions

Nano Dimension is set to acquire Markforged in an all-cash deal that values ​​the company at $5 per share. In the transaction, Markforged will be acquired at a valuation of $115 million, representing a 71.8% premium compared to its valuation prior to the purchase announcement. Last year, the business posted sales of $93.8 million and a non-GAAP (adjusted) gross margin of 48.6%.

By bringing Markforged and Desktop Metal under its corporate umbrella, Nano Dimension expects to improve its position in the additive manufacturing space and set a clear path to profitability. Investors like the move and are bidding up Nano Dimension’s stock in response.

What’s next for Nano Dimension stock?

Nano Dimension’s acquisition of Markforged is expected to close in the first quarter of 2025. Meanwhile, its acquisition of Desktop Metal is expected to close in the fourth quarter of this year. The three companies had combined revenue of $340 million last year, and Nano Dimension management expects the unification of the businesses to pave the way for a transition to consistent profitability.

Following today’s jump, Nano Dimension has a market cap of about $532 million. The company also expects to have approximately $475 million in cash and equivalents after the Markforged acquisition closes. If future acquisitions provide the positive catalysts management anticipates, Nano Dimension stock could still be quite cheap at current prices.