Nano Dimension buys Israeli machine learning co DeepCube

Nano Dimension 3D printer  photo: PR

Nano Dimension will pay $70 million for DeepCube, which applies algorithms to improve data analysis and deployments of advanced deep learning-based AI systems.

Israeli electronic components 3D printing company Nano Dimension (Nasdaq: NNDM) announced today that is has signed a definitive agreement to acquire Israeli machine learning/deep learning (ML/DL) technology company DeepCube Ltd..

In a $70 million cash and shares deal, Nano Dimension will pay the shareholders of DeepCube $40 million in cash and $30 million in American Depositary Shares (ADSs) of Nano Dimension, which are blocked for various periods of up to 3 years, after closing of this transaction. Closing is expected in the next few days, subject to the satisfaction of customary closing conditions.

DeepCube technology applies patented breakthrough algorithms to improve data analysis and deployments of advanced Deep Learning-based artificial intelligence (AI) systems. The Machine Learning application includes faster and more accurate training of deep learning models, and substantially improves inference performance and real-time metrics.

Tel Aviv-based DeepCube was founded in 2018 by CTO Dr. Eli David and executive chairman Yaron Eitan, both directors of Nano Dimension. DeepCube's CEO is Michael Zimmerman. The company has raised $12 million to date, according to IVC, from investors including Awz Ventures and KDT. 

Over the past seven months, Nano Dimension has raised $1.5 billion on Nasdaq for mergers and acquisitions and is likely to buy more companies. Nano Dimension's share price is currently 7.65% higher on Nasdaq at $7.14, giving a market cap of $1.8 billion.

Nano Dimension CEO Yoav Stern said, "Similar supply chain issues, as described recently in the public media in relation to the semiconductor industry, are hovering over the printed circuit board fabrication and assembly industries. Those segments are even more subject to margins pressure due to the East Asia low labor cost and "non-free-market" effects on the capital intensity and pricing mechanisms. Moreover, the PCB/PCBA industry is directly affected by the issues of the chip-components shortage."

He added, "Nano Dimension’s vision is to establish "INDUSTRY 4.0" solutions, which entail building an AI/ML "distributed digital fabrication application" rather than just building machines as capital equipment. The "AI/ML/DL Distributed Electronic Fabrication Application" will enable a totally environmentally and ecologically friendly digital control of the supply chain for Hi-PEDs (High-Performance-Electronic-Devices), or very high performance AME-3D-PCBs."

DeepCube cofounder and CTO Dr. Eli David, who will become Nano Dimension’s CTO ML/DL said, "DeepCube has been negotiating with a few of the world-leading integrated circuits and central processing unit (CPU) manufacturers which are still hoping to adopt its unique AI technology for dramatically improving the efficiency of deep learning deployments in the real-world. Those opportunities will be pursued as a part of Nano Dimension’s strategy. However, we believe we shall reinforce our proof of concepts for those large players by joining forces with Nano Dimension. This is the most exciting opportunity for us, since we believe that our advanced AI capabilities combined with Nano Dimension’s unique technological edge can realize the "INDUSTRY 4.0" vision and revolutionize the entire AME industry."

DeepCube was represented in the deal by Advs. Oded Kadosh, Guy Lachman and Zeev Pearl from Pearl Cohen law office.

Published by Globes, Israel business news - en.globes.co.il - on April 20, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Nano Dimension 3D printer  photo: PR
Nano Dimension 3D printer photo: PR
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018