Israeli 3D printing company Nano Dimension (Nasdaq: NNDM) has reported a 12.1% holding in Rehovot-based 3D printing company Stratasys (Nasdaq: SSYS). The stake is currently worth $152 million on the market.
The purchase of the shares, with some of the nearly $1.5 billion, which it raised, in a series of public offerings on Wall Street in late 2020 and early 2021, makes Nano Dimension the largest shareholder in Stratasys - an even bigger holding than Cathie Wood's Ark Fund, which holds shares in both companies.
Sources close to Nano Dimension insist that the company is not launching a hostile takeover. Stratasys focuses on 3D printing of polymers for manufacturing industry while Nano Dimension specializes in 3D printing of electronic components.
Nano Dimension has a market cap of $860 million, down 80% from its peak last year, while Stratasys has a market cap of $1.26 billion, after its share price has fallen only 5% over the past year.
Nano Dimension said, "With $521 million and $607 million of revenue in 2020 and 2021, respectively, Stratasys is a leader in the global shift to AM through smart and connected 3D printers, polymer materials, a software ecosystem and parts on demand. Stratasys serves customers worldwide by transforming product design, bringing agility to manufacturing and supply chains, and improving patient care."
Nano Dimension chairman and CEO Yoav Stern said, "The purpose of Nano Dimension in buying Stratasys shares is the formation of a strategic investment in a market-leader which is well established in a relatively seasoned market segment, while Nano Dimension’s disruptive technologies in AME and 3D metal printing supply its shareholders with value created by accelerated growth and expansion curves. Hence, an investor in Nano Dimension will gain from its value creation in "blue ocean" type AM sectors plus having strategic upside from investment in Stratasys, which enjoys a commanding presence in large, stable more mature, mostly polymer-based AM technologies. In contrast, Nano Dimension’s material development thrusts and business model strategy are centered around metals with electro-mechanical conductive parameters, metals with superior mechanical qualities, dielectric material, and printing of multi-dimensional-electronic devices and mechanical parts."
Published by Globes, Israel business news - en.globes.co.il - on July 18 2022.
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