Nano Dimension discontinues four subsidiaries to cut costs and restructure under new CEO leadership.
Nano Dimension announced Friday it will discontinue operations for Admatec, DeepCube, Fabrica, and Formatec, labeling them as “non-core product groups” as part of a broader restructuring initiative.
The shuttered businesses, which focus on 3D printed ceramics, micro additive manufacturing and deep learning-based artificial intelligence, were acquired between 2021 and 2022, prior to Nano Dimension’s complicated acquisition battles with Desktop Metal that concluded last month in a transaction valued at $179.3 million.
According to newly appointed CEO Ofir Bahara, the closures and other organizational efficiencies have reduced annual operating expenses by over $20 million and increased revenue per employee by 52%, from $147,000 to $223,000.
“We’ve taken a hard look at our portfolio,” Bahara stated in a letter accompanying the company’s 2024 financial results. This examination included scrutinizing “excessive G&A, including unwarranted management overhead,” breaking down silos, and realigning the organization “around the customer.”
The restructuring aims to create “less hierarchy, more execution, and a flatter, faster organization better equipped to innovate and deliver,” according to Bahara. Nano Dimension will now focus its efforts on two core product groups: Additively Manufactured Electronics (AME) and surface-mount technology (SMT).
Bahara also touched on the recent acquisitions the company made with Desktop Metal and Markforged. While the review of Markforged, which was purchased last week for $116 million, is at an early stage, the letter detailed Desktop Metal’s severe financial troubles, including low liquidity and $115 million in outstanding convertible notes.
“Desktop Metal does not presently have the liquidity or other sources of financing required to repurchase the notes as required by the indenture or satisfy its other substantial obligations,” Bahara said. “While Nano Dimension issued limited financing for short-term purposes, it cannot give any assurances as to the results of the anticipated strategic review of Desktop Metal or any further financing being made available.”
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The comments further support recent reports that Nano is reviewing “all strategic alternatives” for Desktop Metal, including the possibility of selling off the company little more than a month since the takeover.
