Nano Dimension ‘exits’ Formatec and Admatec, highlights Desktop Metal’s ‘significant liabilities’
May 2, 2025
Nano Dimension, headquartered in Waltham, Massachusetts, USA, has announced it is ‘discontinuing’ its Formatec and Admatec product lines. Reported in its 2024 financial results, and discussed in the accompanying investor call, it was also stated that the recently acquired Desktop Metal business is undergoing a strategic review as a result of its limited liquidity and significant liabilities.
TRUSTED CONTENT. TARGETED AUDIENCE
Advertise with Metal AM and access a global base of 50,000+ AM professionals
| Contact us |
Formatec and Admatec
Formatec was established as a Ceramic Injection Molding company in Holland in 1996. Through its research into ceramic Additive Manufacturing and a partnership with Energy Center Netherlands, it established Admatec Europe in 2013. Admatec developed its Admaflex Technology, a stereolithography-based AM process, and launched the Admaflex 130 AM machine in 2016. This machine can process both ceramic and metal.
After some years of small-scale Metal Injection Molding (MIM) production of refractory metals such as tungsten, Formatec added a full MIM production line to its portfolio in 2020. Nano Dimension acquired Formatec and Admatec in 2022.
Asked during the conference call about the future of these businesses, Julian Lederman, Chief Business Officer at Nano, stated, “We did look at divestment opportunities on all of them. That is our responsibility and our interest to shareholders to do so. After running processes there, we found that there wasn’t an opportunity to do so, and we ultimately had to make a decision on what is best for our shareholders. And I think we were very convinced that the best thing to do was discontinue as soon as possible after running that process.”
Discussing the management’s recent assessment and strategic outlook for the company, Ofir Baharav, Nano Dimension’s CEO, stated, “The outcome was a focused commitment to two core product groups: Additively Manufactured Electronics (AME) and surface-mount technology (SMT). At the same time, we made the decision to discontinue non-core product groups, including Admatec, DeepCube, Fabrica, and Formatec.”
These moves, along with broader organisational efficiencies, were said to have enabled Nano to reduce the annualised operating expenses of its core business by over $20 million and increase revenue per employee from $147,000 to 223,000, a 52% gain. “This was disciplined, decisive action – and it delivered results,” Baharav added.
Desktop Metal and Markforged
In terms of Desktop Metal and Markforged, it was stated that “both organisations have technologies that are aligned with Nano Dimension’s focus on digital manufacturing of advanced, complex parts. Yet, it is essential that we remain objective and critical – particularly regarding operational inefficiencies and financial challenges that stakeholders are already aware of.”
It was highlighted that Desktop Metal has significant liabilities, including $115 million principal amount of outstanding convertible notes, incurred prior to its acquisition. As the notes indenture requires, Desktop Metal is offering to repurchase the notes by June 11, 2025, for the principal amount plus accrued interest.
“Desktop Metal does not currently have liquidity or a financing commitment sufficient to fund the repurchase of the notes required by the indenture or satisfy its other material liabilities,” continued Baharav.
“Following our acquisition, we provided limited financing to Desktop Metal to help it address short-term liquidity needs and run a process to evaluate its strategic alternatives. No assurances can be given as to the outcome or timing of Desktop Metal’s strategic review process or our consideration of whether or in what amount to provide additional financing.”
“Clarity is a key tenet of my management team. Our goal is to prioritise forthrightness and trust with investors and build credibility with all stakeholders. While we are in the early stages of our review of Markforged, and while Desktop Metal is currently in the process of evaluating strategic alternatives, we commit to providing timely updates on these processes,” Baharav added.
The company stated that it plans to host a strategic update in June 2025.
Financial results
Nano Dimension reported that total revenues for the year ended December 31, 2024, were $57.8 million, compared to $56.3 million in the previous year. Net loss was $95.9 million ($0.44 per share) compared to loss of $54.6 million ($0.22 per share), for the previous year. The increase was said to be mainly attributed to the revaluation of its investment in Stratasys’ shares.
Over the year, the company reduced its R&D expenses, totalling some $37.2 million compared to $62 million for the previous year. This decrease was mainly attributed to a decrease in payroll and related expenses, materials for R&D use and subcontractors expenses, as well as a decrease in share-based payments expenses.
Cash and cash equivalents, together with bank deposits, totalled $759.3 million as of December 31, 2024, compared to $852.5 million as of December 31, 2023. Total shareholders’ equity was reported as being $858.7 million, compared to $1,015.8 million at the end of 2023.
