Things are changing at Nano Dimension.
The company recently underwent a very significant change in both its board of directors and management. This meant a change in strategy, but there were some leftover items to clean up from the previous regime.
The biggest items were pending acquisitions/mergers with two big players in the 3D print world: Desktop Metal and Markforged.
One of the reasons for the management change was these deals, and it was thought that the new management might attempt to stop them from completing. However, Desktop Metal launched a lawsuit against Nano Dimension to force them to complete the deal, which had been delayed for regulatory reasons. Last week, a court declared that Desktop Metal was correct, and that the merger should proceed ASAP.
Nano Dimension board chair said:
“While we are disappointed with the decision of the Delaware Court of Chancery and are considering all of our options, we recognize that the transaction may close. Nano Dimension’s board of directors and management have been diligently planning for a rapid, successful integration of Desktop Metal’s people, products, and assets to help the combined company become a world leader in digital manufacturing.”
That does not exactly sound like they were particularly anxious to complete the merger. However, with the court ruling, they will now have to do so, and quickly. In fact, the completion of the deal was announced only days after the court ruling.
The new management at Nano Dimension has published its new “Strategic Vision” after the court case outcome. They’ve listed four key drivers that will govern their work going forward:
- Maintaining Financial Strength: Ensure a robust capital base.
- Driving Profitable Growth: Focus on products and services where there’s cutting-edge technology with a growth outlook that can deliver financial results.
- Growing Margins: Achieve manufacturing excellence by consolidating operations, supply chains, and information systems.
- Building Indispensable Customer Partnerships: Deliver solutions that make Nano Dimension a critical manufacturing partner
These make a lot of sense and are quite practical. They are also very different from the previous management of the company that was all-in on acquisitions and mergers, even those that didn’t seem sensible.
The four points include strategies to ensure financial stability and growth, along with some “stickiness” for customers.
The one driver that is of most interest to me is the second one, where they will focus on products and services that have a “growth outlook”. To me, that sounds like they may be considering a complete inventory of all the technologies they have inherited from all the acquisitions — and the acquisitions of the acquisitions.
The list is quite long and includes many different 3D print processes for different market segments (see image at top). Technologies from Desktop Metal, Digital Metal, Markforged, ExOne, EnvisionTec, Admatec, and many more are involved.
In today’s highly competitive 3D print market, the key to success is to focus on the best tech, putting most resources there. If I were suddenly in charge of Nano Dimension, that’s what I would do: examine all of these technologies and see which ones actually have good potential for financial success. I would put all the resources towards those and then sell or shut down the rest.
Unfortunately, that might mean the end of certain technologies and 3D print processes, as they have been caught up in these corporate moves. We don’t know exactly where Nano Dimension will go next, but there’s likely to be technology casualties along the way.
Via Nano Dimension
