Desktop Metal Secures Victory in Court Battle with Nano Dimension
In a significant legal victory, Desktop Metal, Inc., a leading company in the additive manufacturing industry, has announced that the Delaware Court of Chancery has ruled in its favor in the ongoing litigation against Nano Dimension Ltd. and Nano US I, Inc. (collectively, “Nano”). The lawsuit was initiated due to a dispute over the merger agreement between Desktop Metal and Nano, which was signed on July 2, 2024.
The Court’s Decision
In its post-trial opinion and order issued on March 24, 2025, the Delaware Court of Chancery found that Nano had materially breached the Merger Agreement. The breach occurred when Nano failed to secure necessary regulatory approvals for the merger in a timely manner. As a result, Desktop Metal was entitled to terminate the Merger Agreement and retain the reverse termination fee of $35 million.
Impact on Desktop Metal
This legal victory is a significant boost for Desktop Metal, which has been working to expand its presence in the additive manufacturing market. The company’s CEO, Ric Fulop, expressed his satisfaction with the outcome, stating, “We are pleased that the Delaware Court of Chancery recognized the material breach by Nano and affirmed our right to terminate the Merger Agreement.”
The termination of the merger agreement with Nano allows Desktop Metal to focus on its strategic priorities, including the continued development and commercialization of its innovative additive manufacturing solutions. Desktop Metal’s stock price responded positively to the news, with shares rising by more than 10% in after-hours trading.
Impact on the Additive Manufacturing Industry
The outcome of this legal battle could have far-reaching implications for the additive manufacturing industry. The decision sets a precedent for how courts will handle disputes related to merger agreements in the tech sector. It also highlights the importance of regulatory compliance in mergers and acquisitions, particularly in the rapidly evolving additive manufacturing industry.
Looking Ahead
Desktop Metal is now free to pursue its strategic objectives without the distraction of the merger with Nano. The company’s focus on innovation and growth is expected to continue, as it seeks to capitalize on the growing demand for additive manufacturing solutions in various industries. With its innovative technology and strong market position, Desktop Metal is well-positioned to lead the way in this exciting and transformative industry.
- Desktop Metal secures legal victory in dispute with Nano Dimension
- Court finds Nano materially breached merger agreement
- Desktop Metal terminates merger and retains $35 million reverse termination fee
- Impact on Desktop Metal: stock price rises, focus on strategic priorities
- Impact on the additive manufacturing industry: precedent-setting court decision, importance of regulatory compliance
In conclusion, the Delaware Court of Chancery’s decision in favor of Desktop Metal marks a significant milestone in the company’s history and sends a strong message to the tech industry about the importance of regulatory compliance in mergers and acquisitions. Desktop Metal is now free to focus on its strategic objectives, while the additive manufacturing industry continues to evolve and grow. The future looks bright for this innovative and transformative technology.
