Nano dimension (NASDAQ: NNDM) shares rose on Wednesday. The company’s stock closed the daily session up 16.7%, according to data from S&P Global Market Intelligence.
Before the market opened this morning, Nano Dimension released preliminary second-quarter results that beat Wall Street expectations. The 3D printing specialist also announced that it is set to acquire another player in the additive manufacturing sector.
Nano Dimension’s preliminary Q2 report shows sequential growth
With its preliminary Q2 earnings release, Nano Dimension reported unaudited revenue of $14.8 million for the period. While the figure was just above the $14.74 million in sales it booked in Q2 2023, it represented an 11% sequential increase compared to sales in the first quarter of this year. The sequential revenue increase suggests that Nano has either secured a new customer or another significant purchase from an existing one, and investors are optimistic about the news.
Nano Dimension has secured flexible terms for its new acquisition
In conjunction with its preliminary Q2 release, Nano Dimension also announced that it is set to acquire Desktop Metal in an all-cash transaction worth as much as $5.50 per share — or $183 million. If the deal goes through at the valuation level, it would represent a 27.3% premium paid based on Desktop Metal’s previous closing price. But it appears the pending transaction has baked in some favorable headroom for Nano Dimension.
According to recent announcements from Nano Dimension, the company could ultimately pay as little as $4.07 per share, or $135 million, if closing costs prove higher than expected or if the deal’s completion is delayed until 2025. Nano Dimension would still have to cover the additional costs associated with closing the deal and the credit provided to Desktop Metal, but the terms appear to provide favorable flexibility with respect to costs and the timing of completion.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why Nano Dimension Shares Soared Today was originally published by The Motley Fool
