Why Nano Dimension Stock Soared Today

The 3D-printing and additive manufacturing specialist announced encouraging preliminary sales results and a new acquisition.

Nano Dimension (NNDM 16.67%) stock surged on Wednesday. The company’s share price closed out the daily session up 16.7%, according to data from S&P Global Market Intelligence.

Before the market opened this morning, Nano Dimension published preliminary second-quarter results that came in ahead of Wall Street’s expectations. The 3D-printing specialist also announced it is poised to acquire another player in the additive manufacturing space.

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 came in just slightly above the $14.74 million in sales it posted in Q2 2023, it represented an 11% sequential increase from its sales in this year’s first quarter. The sequential sales uptick suggests Nano has either landed a new customer or another significant purchase from an existing client, and investors are bullish on the news.

Nano Dimension has secured flexible terms for its new acquisition

In conjunction with its preliminary Q2 release, Nano Dimension also announced it is poised to acquire Desktop Metal in an all-cash transaction deal valued at as much as $5.50 per share — or $183 million. If the deal were to go through at the valuation level, it would represent a 27.3% premium paid based on Desktop Metal’s previous closing price. But it looks like the pending transaction has favorable leeway baked in for Nano Dimension.

As per Nano Dimension’s recent announcements, it could wind up paying as little as $4.07 per share, or $135 million, in the event that closing costs are higher than anticipated or the completion of the deal extends into 2025. Nano Dimension would still have to cover additional costs related to the closing of the deal and credit extended to Desktop Metal, but the terms appear to provide beneficial flexibility in relation to expenses and completion timing.

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.

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