What happened
Shares of Nano Dimension (NNDM +6.92%) rose today after the company announced that it had entered a definitive agreement to acquire DeepCube, a machine-learning and deep-learning technology company.
Nano Dimension's stock rose by as much as 17.3% this morning and had gained 7.5% at the end of the trading day.
So what
Nano Dimensions said in a press release that it will pay DeepCube shareholders approximately $40 million in cash and $30 million in its American depositary shares. The company said that the closing of the acquisition is expected in the next few days.
Image source: Getty Images.
The CEO of Nano Dimension, Yoav Stern, said in a statement that some of DeepCube's technology acts as the "brain" for the neural network of edge computing devices and that Nano will be able to use that tech for upcoming edge devices.
Dr. Eli David, the chief technology officer of DeepCube, said that the acquisition will help change the additively manufactured electronic (AME) industry that Nano is a part of.
"This is the most exciting opportunity for us, since we believe that our advanced AI capabilities combined with Nano Dimension's unique technological edge can realize the 'INDUSTRY 4.0' vision and revolutionize the entire AME industry," David said in a press release.
Now what
Even with today's share price jump, Nano Dimensions' stock is down about 20% year to date. But long-term investors may want to focus on the company's impressive price gains over the past 12 months, an astonishing 450%. And with Nano's latest acquisition, it appears investors may have more to look forward to from this tech stock.
