Nano Dimension Responds to Desktop Metal’s Lawsuit Regarding Merger Agreement
Nano Dimension (NNDM) has responded to a lawsuit filed by Desktop Metal on December 20, 2024, regarding their merger agreement from July 2, 2024. Desktop Metal alleges that Nano Dimension failed to make reasonable efforts to obtain regulatory approval for the merger. Nano Dimension states the lawsuit is meritless and contradicts the merger agreement's terms, particularly concerning their right to complete the Committee on Foreign Investment in the United States (CFIUS) review process. The company views the lawsuit as an attempt to prevent them from exercising their merger agreement rights and to impose unauthorized deadlines. Nano Dimension plans to defend its position vigorously.
Nano Dimension (NNDM) ha risposto a una causa intentata da Desktop Metal il 20 dicembre 2024, riguardante il loro accordo di fusione del 2 luglio 2024. Desktop Metal sostiene che Nano Dimension non abbia fatto sforzi ragionevoli per ottenere l'approvazione normativa per la fusione. Nano Dimension afferma che la causa è infondata e contraddice i termini dell'accordo di fusione, in particolare riguardo al loro diritto di completare il processo di revisione del Committee on Foreign Investment in the United States (CFIUS). L'azienda considera la causa un tentativo di impedire loro di esercitare i diritti previsti dall'accordo di fusione e di imporre scadenze non autorizzate. Nano Dimension prevede di difendere con vigore la propria posizione.
Nano Dimension (NNDM) ha respondido a una demanda presentada por Desktop Metal el 20 de diciembre de 2024, relacionada con su acuerdo de fusión del 2 de julio de 2024. Desktop Metal alega que Nano Dimension no realizó esfuerzos razonables para obtener la aprobación regulatoria para la fusión. Nano Dimension afirma que la demanda no tiene mérito y contradice los términos del acuerdo de fusión, especialmente en lo que respecta a su derecho a completar el proceso de revisión del Committee on Foreign Investment in the United States (CFIUS). La empresa ve la demanda como un intento de impedirles ejercer sus derechos bajo el acuerdo de fusión e imponer plazos no autorizados. Nano Dimension planea defender su posición con vigor.
나노 디멘션 (NNDM)은 2024년 12월 20일에 데스크탑 메탈이 제기한 소송에 대해 응답했습니다. 이 소송은 2024년 7월 2일의 합병 계약과 관련이 있습니다. 데스크탑 메탈은 나노 디멘션이 합병에 대한 규제 승인을 받기 위해 합리적인 노력을 하지 않았다고 주장합니다. 나노 디멘션은 이 소송이 근거가 없으며 합병 계약의 조건, 특히 미국 외국인 투자 위원회 (CFIUS) 검토 과정을 완료할 권리에 위배된다고 주장합니다. 이 회사는 소송을 합병 계약상의 권리 행사를 방해하고 비인가된 기한을 부과하려는 시도로 보고 있습니다. 나노 디멘션은 자신의 입장을 강력히 방어할 계획입니다.
Nano Dimension (NNDM) a répondu à une poursuite intentée par Desktop Metal le 20 décembre 2024, concernant leur accord de fusion du 2 juillet 2024. Desktop Metal allègue que Nano Dimension n'a pas fait d'efforts raisonnables pour obtenir l'approbation réglementaire pour la fusion. Nano Dimension déclare que la poursuite est sans mérite et contredit les termes de l'accord de fusion, notamment en ce qui concerne leur droit de terminer le processus de révision du Committee on Foreign Investment in the United States (CFIUS). L'entreprise considère cette poursuite comme une tentative de les empêcher d'exercer leurs droits liés à l'accord de fusion et d'imposer des délais non autorisés. Nano Dimension prévoit de défendre vigoureusement sa position.
Nano Dimension (NNDM) hat auf eine Klage reagiert, die von Desktop Metal am 20. Dezember 2024 eingereicht wurde und die sich auf ihr Fusionsabkommen vom 2. Juli 2024 bezieht. Desktop Metal behauptet, dass Nano Dimension keine angemessenen Anstrengungen unternommen hat, um die behördliche Genehmigung für die Fusion zu erhalten. Nano Dimension erklärt, dass die Klage unbegründet sei und den Bedingungen des Fusionsabkommens, insbesondere in Bezug auf ihr Recht, den Committee on Foreign Investment in the United States (CFIUS)-Überprüfungsprozess abzuschließen, widerspricht. Das Unternehmen sieht die Klage als einen Versuch, sie daran zu hindern, ihre Rechte aus dem Fusionsabkommen auszuüben und unbefugte Fristen aufzuerlegen. Nano Dimension plant, seine Position energisch zu verteidigen.
- None.
- Legal dispute with Desktop Metal could delay or jeopardize the merger completion
- Pending CFIUS regulatory approval creates uncertainty for the merger outcome
- Additional legal expenses expected due to lawsuit defense
Insights
This legal dispute between Desktop Metal and Nano Dimension centers on a critical aspect of their merger agreement - the CFIUS regulatory approval process. The lawsuit's focus on "reasonable best efforts" in obtaining regulatory approval is particularly significant, as this standard is often contentiously interpreted in merger litigation. Desktop Metal's legal strategy appears to be an attempt to force acceleration of the CFIUS review process, which could potentially compromise the thoroughness required for national security considerations.
The timing of this lawsuit, coinciding with the CFIUS review, suggests Desktop Metal may be experiencing pressure to complete the deal quickly. However, rushing CFIUS reviews can be counterproductive, as the committee typically maintains its own timeline for national security assessments. Nano Dimension's position that the lawsuit contradicts the merger agreement's terms regarding CFIUS review rights appears legally defensible, as merger agreements typically account for regulatory review periods.
The Delaware Court of Chancery, known for its sophisticated handling of corporate disputes, will likely scrutinize the specific language in the merger agreement regarding regulatory approvals and the parties' obligations. Based on similar precedents, courts have generally respected the need for thorough regulatory reviews, particularly in cases involving CFIUS.
The lawsuit reveals underlying tensions in this strategic merger, potentially signaling deal execution risks. Desktop Metal's aggressive legal posture could indicate concerns about deal timing or possibly underlying business performance pressures. The dispute over CFIUS approval efforts is particularly noteworthy given both companies' positions in the sensitive additive manufacturing sector, where national security considerations are paramount.
For investors, this development introduces significant deal uncertainty. Similar disputes in technology sector mergers have occasionally led to deal terminations or renegotiated terms. The focus on CFIUS approval is especially relevant given increased scrutiny of technology transfers and foreign investment in U.S. advanced manufacturing capabilities. The market should closely monitor whether this legal dispute impacts the deal's original valuation terms or timeline.
From a strategic perspective, Desktop Metal's lawsuit might be interpreted as a tactical move to maintain deal momentum or possibly secure more favorable terms. However, this approach carries risks, as heightened tensions could complicate regulatory approvals and potentially damage operational integration planning.
Waltham, Mass., Dec. 23, 2024 (GLOBE NEWSWIRE) -- Nano Dimension Ltd. (Nasdaq: NNDM) (“Nano Dimension” or the “Company”), a supplier of Additive Manufacturing solutions, today shared its response to a December 20, 2024 lawsuit filed by Desktop Metal, Inc. (NYSE: DM) (“Desktop Metal”) against the Company in the Delaware Court of Chancery alleging Nano Dimension has failed to use its reasonable best efforts to obtain regulatory approval in connection with the merger agreement between the parties dated July 2, 2024 (the “Merger Agreement”).
The Company believes the lawsuit is without merit and inconsistent with the terms of the Merger Agreement, particularly with respect to the Company’s right to work through the review process that is under way with the Committee on Foreign Investment in the United States ("CFIUS"). The Company believes the lawsuit is nothing more than an effort by Desktop Metal to prevent the Company from exercising its rights under the Merger Agreement and to impose deadlines and obligations that are inconsistent with that agreement. The Company intends to vigorously defend itself and preserve its rights under the Merger Agreement.
About Nano Dimension Ltd.
Nano Dimension (Nasdaq: NNDM) offers a variety of Digital Manufacturing technologies serving customers across vertical target markets such as aerospace and defense, advanced automotive, high-tech industrial, specialty medical technology, and R&D and academia.
With its suite of digital manufacturing technologies, Nano Dimension is enabling its customers with prototyping and high-mix-low-volume production, along with IP security, design-for-manufacturing capabilities, and more sustainable means of fabrication.
For more information, please visit https://www.nano-di.com/
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For example, Nano is using forward-looking statements in this press release when it discusses (i) its beliefs regarding the merits of the lawsuit filed by Desktop Metal, (ii) its beliefs regarding the lawsuit with respect to Nano’s rights under the Merger Agreement and (iii) its intention to vigorously defend itself against the lawsuit and preserve its rights under the Merger Agreement. Such forward-looking statements include statements regarding Nano’s future intentions, strategic plan, events or developments that Nano intends, expects, projects, believes or anticipates will or may occur in the future. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. When used in this communication, the words “outlook,” “guidance,” “expects,” “believes,” “anticipates,” “should,” “estimates,” “may,” “will,” “intends,” “projects,” “could,” “would,” “estimate,” “potential,” “continue,” “plan,” “target,” or the negative of these words or similar expressions are intended to identify forward-looking statements, though not all forward-looking statements contain these identifying words. These forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company’s actual results and performance to be materially different from those expressed or implied in the forward-looking statements. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Because such statements deal with future events and are based on the current expectations of Nano, they are subject to various risks and uncertainties. Factors and risks that may cause Nano’s actual results or performance to be materially different from those expressed or implied in the forward-looking statements include, but are not limited to, (i) the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction; (ii) the satisfaction of the closing conditions of the proposed transaction; and (iii) other risks related to the completion of the proposed transaction and actions related thereto. Except as otherwise required by law, Nano undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this communication. Nano is not responsible for the contents of third-party websites.
Nano Dimension Contacts
Investors: Julien Lederman, VP Corporate Development | ir@nano-di.com
Media: Kal Goldberg / Bryan Locke / Kelsey Markovich | NanoDimension@fgsglobal.com
FAQ
What is the lawsuit filed against Nano Dimension (NNDM) by Desktop Metal about?
When was the merger agreement between NNDM and Desktop Metal signed?
What regulatory approval is pending for the NNDM-Desktop Metal merger?
How is Nano Dimension (NNDM) responding to Desktop Metal's lawsuit?
