Nano Dimension to Merge with U.S. Health AI Firm in Stock Deal
Nano Dimension, the Israeli 3D-printing company, said it signed a memorandum of understanding with U.S. company Infinite Epigenetics to merge and create an AI-based healthcare business. Under the proposed all-stock deal, Nano Dimension would serve as the public shell for the combined company, while the operating business and name would come from Infinite Epigenetics. The transaction values Infinite at $890 million, and Nano’s current shareholders would keep a “significant” minority stake, pending a definitive agreement and approval from Nano shareholders.
The share exchange will be set using a 20% premium to Nano Dimension’s net cash at closing. Nano had $440 million in cash at the end of the first quarter, while its market value is about $312 million. The companies expect the merged entity to hold more than $400 million in cash. The new company would be led by Matt Dawson, Infinite’s co-founder and chief executive.
Infinite is targeting the more than $90 billion U.S. clinical diagnostics market. It says its AI platform, built around a large database in its field, can identify, predict or diagnose diseases including diabetes, heart disease and COPD. In a company presentation, it said, “We read the body’s operating system, and use AI to translate that into early diagnosis and better treatment.”
Nano Dimension’s chief executive, David Stehlin, said Infinite was the most attractive option for a company seeking to create value for shareholders. He said that after months of work with a financial adviser, Nano reviewed about 20 possibilities across multiple sectors and found that Infinite met its key criteria: proven technology, revenue generation, a large and growing market, experienced management and strong investors. He also said the merged company could become a category-defining business at the intersection of healthcare, biological data and AI.
Nano Dimension, which previously focused on 3D printing, raised more than $1 billion during its peak fundraising years and planned to use the money for acquisitions. It tried, unsuccessfully, to acquire Stratasys, later made several purchases, but its valuation shrank, management changed, and shareholders at times battled the leadership. The company recently sold Stratasys a business it had bought last year as part of a strategy to reduce cash burn. Nano has not yet clearly said what it plans to do with its remaining 3D-printing operations or its 468 employees, most of them in Israel and the U.S. The merger notice said Nano is still operating its remaining product lines while continuing its strategic review.
