What Happened?

Shares of 3D printer provider Markforged (NYSE:MKFG) jumped 74% in the morning session after it agreed to be acquired by Nano Dimension in an all-cash transaction for $5.00 per share. The acquisition price represents a 71.8% premium to Markforged's price on September 24th, 2024 (the day before the acquisition agreement was announced).

The acquisition is expected to improve Nano Dimension's recipe for providing additive manufacturing and 3D printing technologies following its recent decision to acquire Desktop Metal. Besides the anticipated financial and operational synergies, via the deduplication of processes and functions, the deal is expected to provide the combined company with the technology to rapidly gain market share and deliver more scalable solutions in a growing market.

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What The Market Is Telling Us

Markforged’s shares are extremely volatile and have had 71 moves greater than 5% over the last year. Markforged’s shares are very volatile and have had 71 moves greater than 5% over the last year. But moves this big are rare even for Markforged and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was a day ago when the stock gained 22.5% on the news that the company announced a settlement and patent license agreement relating to the patent infringement litigation brought by Continuous Composites (which specializes in 3D printing).

If approved by the Delaware District Court, the agreement will resolve all claims and counterclaims relating to the litigation.

The stock's move suggests that the market approves of the much-needed clarity the agreement will provide, as it clears all uncertainty related to the case, including the potential financial impact and disruption to regular operations that are often connected to legal disputes.

Markforged is down 45.4% since the beginning of the year, and at $4.46 per share, it is trading 69.2% below its 52-week high of $14.50 from September 2023. Investors who bought $1,000 worth of Markforged’s shares at the IPO in October 2020 would now be looking at an investment worth $43.20.

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