Nano Dimension's Acquisition of Desktop Metal Gains Support from Proxy Advisory Firm ISS

ISS Endorses Nano Dimension's Acquisition of Desktop Metal

In a significant development for the 3D printing industry, Institutional Shareholder Services (ISS), a leading independent proxy advisory firm, has recommended that Desktop Metal shareholders vote in favor of the proposed acquisition by Nano Dimension Ltd. This endorsement marks a crucial step forward in the consolidation of two major players in the additive manufacturing sector 1

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The Acquisition Deal

The proposed transaction, initially announced on July 13, 2023, involves Nano Dimension acquiring Desktop Metal in an all-stock deal. Under the terms of the agreement, Desktop Metal shareholders would receive 0.1235 ordinary shares of Nano Dimension for each share of Desktop Metal they own 2

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ISS Recommendation and Rationale

ISS, known for its influence on institutional investors' voting decisions, has provided a positive recommendation for the deal. The advisory firm cited several key factors in its decision:

1. The strategic rationale behind the merger
2. The expected synergies and cost savings
3. The potential for long-term value creation for shareholders

The endorsement from ISS is viewed as a significant boost for the transaction, as many institutional investors rely on the firm's recommendations when making voting decisions 1

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Industry Impact and Future Outlook

The proposed merger between Nano Dimension and Desktop Metal is expected to create a formidable entity in the additive manufacturing space. The combined company would benefit from:

1. Expanded product portfolio
2. Enhanced research and development capabilities
3. Improved market position

Industry analysts suggest that this consolidation could lead to accelerated innovation and more competitive offerings in the 3D printing market 2

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Next Steps

With ISS's recommendation in hand, the focus now shifts to the upcoming special meeting of Desktop Metal shareholders, scheduled for September 18, 2023. At this meeting, shareholders will have the opportunity to vote on the proposed acquisition 1

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Market Reaction

Following the announcement of ISS's recommendation, both companies saw positive movement in their stock prices. This market response indicates investor optimism about the potential benefits of the merger and its implications for the broader 3D printing industry 2

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As the additive manufacturing sector continues to evolve, the proposed acquisition of Desktop Metal by Nano Dimension represents a significant milestone. The support from ISS adds credibility to the deal and may influence the final outcome of the shareholder vote, potentially reshaping the competitive landscape of the 3D printing industry.