Nano Dimension Mergers and Acquisitions Presentation Deck
Nano Dimension's Fully-funded, All-cash Offer for Stratasys Shares
Delivers Certain, Immediate Cash, Premium Value Versus Alternatives
Stratasys and Desktop Metal Claim
"Growth Opportunities for the Combined Company:
The Desktop Metal transaction is expected to
establish a uniquely scaled additive manufacturing
company that would be one of the largest companies
in the industry, targeting $1.1B in 2025 revenue.
"Opportunities for Meaningful Synergies: Significant
revenue and cost synergies are expected as a result
of the Desktop Metal transaction, including $50M of
revenue synergies by 2025."
"Increased Financial Strength: The combination is
expected to create a well-capitalized business with a
very attractive financial model [...].”
3D Systems Claim
"Participation in highly certain value creation through
realization of approximately $100 million in estimated
cost synergies."
"Regulatory approvals obtainable in a timely
manner.
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Reality
* While revenues will increase modestly, the combined company gross margins,
cash flows and net income will decrease substantially
Stratasys sacrifices profitability and capital preservation for a costly addition
to the top-line and maintaining independence
Approximately half of the estimated $50 million annual run-rate cost synergies are
derived from corporate cost elimination which requires years to implement; the
remaining cost synergies from COGS and other Opex optimization and any revenue
synergies typically require even longer ramp-up periods
Shareholders will have to wait for synergies to be realized and value to be
created - if at all
Cash generating Stratasys is paying a premium price for the merger with cash
burning Desktop Metal with $(193) million 2022A Free Cash Flow (1); current
cash position allows for less than two years runway
Reality
Lack of quantifiable support for 3D Systems' claims and uncertainty for Stratasys
shareholders when and if synergies would be realized
"We see minimal opportunity for scaling benefit [...]. We also see potential
challenges from anti-trust […..].” – Credit Suisse, June 1st, 2023(²)
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Potential regulatory uncertainty as this proposed combination represents the
combination of the largest and second largest players in the 3D printing space
Source: Desktop Metal SEC filings
Note: (1) Free Cash Flow equals Cash Flow from Operations less Capital Expenditures; (2) Shannon Cross, Credit Suisse, June 1st, 2023
NANODIMENSION
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