Why Nano Dimension Stock Is Rising So Fast Today

Nano Dimension (SunMdM 8.14%) stocks are gaining big on Wednesday. The company’s stock was up 8.6% as of 2:00 p.m. ET. 3D printing semiconductor stocks were up 10% earlier in the day.

Nano Dimension shares surge on news the company is on track for a takeover Marked — industrial 3D printing specialist. The news comes on the heels of Nano Dimension’s July announcement that it would acquire Metal desk.

Nano Dimension grows through acquisitions

Nano Dimension is on track to acquire Markforged in an all-cash deal that values ​​the company at $5 per share. The deal will acquire Markforged at a valuation of $115 million, a 71.8% premium to its valuation prior to the announcement of the buyout. Last year, the company reported sales of $93.8 million and a 48.6% non-GAAP (adjusted) gross margin.

By acquiring Markforged and Desktop Metal under its corporate umbrella, Nano Dimension expects to improve its position in the additive manufacturing space and put itself on a clear path to profitability. Investors like the move and are bidding up Nano Dimension shares in response.

What’s next for Nano Dimension shares?

Nano Dimension’s acquisition of Markforged is expected to close in the first quarter of 2025. Meanwhile, the acquisition of Desktop Metal is expected to close in the fourth quarter of this year. The three companies reported combined revenue of $340 million last year, and Nano Dimension’s management expects the combined operations to pave the way for a transition to sustained profitability.

After today’s jump, Nano Dimension has a market cap of about $532 million. The company also expects to have cash and equivalents of about $475 million after the close of the Markforged acquisition. If the upcoming acquisitions prove to be the positive catalysts that management expects, Nano Dimension stock could still be quite cheap at current prices.