Nano Dimension Ltd., announced that it has signed a definitive agreement to acquire DeepCube Ltd. (“DeepCube”), a leader in Machine Learning/Deep Learning (ML/DL) technology. Nano Dimension will pay the shareholders of DeepCube approximately $40 million in cash and $30 million in American Depositary Shares (ADSs) of Nano Dimension, which are subject to stand still for various periods of up to 3 years after closing of this transaction. Such closing is expected in the next few days, subject to the satisfaction of customary closing conditions.
DeepCube technology applies numerous patented breakthrough algorithms to improve data analysis and deployments of advanced Deep Learning-based artificial intelligence (AI) systems. The Machine Learning application includes faster and more accurate training of deep learning models, and drastically improves inference performance and real-time metrics. Its proprietary framework can be deployed on top of any hardware, especially fitting edge devices and real-time applications. DeepCube’s AI/ML/DL solutions demonstrate 10 times speed improvements and memory reduction, making it the only technology which allows efficient deployment of deep leaning models on edge devices and for real-time applications.
DeepCube’s scientists and engineers, all of whom are expected to join Nano Dimension upon closing of this transaction, are AI/ML/DL experts, veterans of defense forces, homeland security and governmental Big Data agencies, as well as academic and industrial research institutions. Its founders are Dr. Eli David and Mr. Yaron Eitan, DeepCube’s Chief Technology Officer and Executive Chairman, respectively (both of whom are also directors of Nano Dimension), and its Chief Executive Officer is Mr. Michael Zimmerman.
Mr. Yoav Stern, CEO of Nano Dimension, commented: “Similar supply chain issues, as described recently in the public media in relation to the semiconductor industry, are hovering over the printed circuit board fabrication and assembly (PCB/PCBA) industries (approximately $65-70 billion in size for fabrication1, and almost an order of magnitude larger for assembly). Those segments are even more subject to margins pressure due to the Far East low labor cost and “non-free-market” effects on the capital intensity and pricing mechanisms. Moreover, the PCB/PCBA industry is directly affected by the issues of the chip-components shortage. Nano Dimension’s vision is to establish “INDUSTRY 4.0” solutions, which entail building an AI/ML “distributed digital fabrication application” rather than just building machines as capital equipment. The “AI/ML/DL Distributed Electronic Fabrication Application” will enable a totally environmentally and ecologically friendly digital control of the supply chain for Hi-PEDs (High-Performance-Electronic-Devices), or very high performance AME-3D-PCBs.”
Mr. Stern added, “The core of this solution will be DeepCube’s AI/ML/DL “brain” that is expected to manage a neural network of edge devices, self-learning and self-improving their efficacy and self-managing and maximizing yield throughout the total network. Nano Dimension machines shipping today (and especially next generation devices which are under development) will be edge devices in the “Digital-fabrication-neural-network” solution as described above.”
“In conclusion”, Mr. Stern said, “think about the personal computers of 1988 to 1998, which metamorphosed from a stand-alone personal device to an edge device of the “local area networks”, then the “wide area networks”, then the internet and eventually “the cloud”. Nano Dimension’s INDUSTRY 4.0 vision means the eventuality of maintaining inventory of high-end electronics devices (Hi-PEDS) in digital form. Print them as you need them, where you need them, only the quantity you need, in the best quality at competitive prices, as it is done in highest yield and throughput possible for that point in time, specifically in high mix/low volume scenarios.”
Dr. Eli David, Chief Technology Officer and co-founder of DeepCube, who will become Nano Dimension’s Chief Technology Officer of ML/DL, commented: “Over the last 18 months, DeepCube has been negotiating with a few of the world-leading integrated circuits and central processing unit (CPU) manufacturers which are still hoping to adopt its unique AI technology for dramatically improving the efficiency of deep learning deployments in the real world. Those opportunities will be pursued as a part of Nano Dimension’s strategy. However, we believe we shall reinforce our proof of concepts for those large players by joining forces with Nano Dimension. 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.”
Sullivan & Worcester Tel-Aviv is acting as legal counsel to Nano Dimension in connection with the acquisition.