For total consideration of $300 million, the acquisition consists of a combination of cash and newly issued Desktop Metal stock.
Desktop Metal has signed a definitive agreement to acquire EnvisionTEC, a global provider of volume production photopolymer 3D printing solutions. The transaction is expected to close in the first quarter of 2021, subject to customary closing conditions.
That’s a move nobody saw coming. Desktop Metal has just closed a busy year with an IPO, the launch of new 3D printers & materials in its portfolio and collaborations with several other entities from the industry.
“I’m thrilled to partner with Al and the EnvisionTEC team to bring significant growth to the additive market,” said Ric Fulop, Founder and Chief Executive Officer of Desktop Metal. “EnvisionTEC is a true pioneer and responsible for many of the leading technologies widely used today to produce end-use photopolymer parts through additive manufacturing. Together, Desktop Metal and EnvisionTEC have an opportunity to shape the future of Additive Manufacturing 2.0 and transform how parts are made around the world. I look forward to welcoming EnvisionTEC to the Desktop Metal team to deliver world-class additive manufacturing solutions that help make our customers successful.”
What does it mean for EnvisionTec?
Although it serves the majority of demanding industries that require 3D printing, we have always known EnvisionTech for its achievements in the medical and healthcare industries.
As from now, the company will operate as a wholly owned subsidiary of Desktop Metal and Al Siblani will continue to serve as Chief Executive Officer of EnvisionTEC.
The company brings a complete portfolio of photopolymers technologies under Desktop Metal’s umbrella, including the new Envision One and Xtreme 8K printing platforms designed for cost-effective volume production.
It has also built up extensive expertise in digital biofabrication additive manufacturing with its Bioplotter platform, which supports the production of biocompatible parts for medical applications such as bone regeneration, cartilage regeneration, soft tissue fabrication, drug release, and organ printing.
“I am excited and honored to partner with Ric and the Desktop Metal team to deliver end-use parts in both metal and polymers as we implement Ric’s vision on the future of Additive Manufacturing 2.0,” said Siblani. “Bringing the two companies together will deliver a global footprint of customers that can cross-benefit from our combined technology platforms. I believe we have many opportunities to scale the business, disrupt traditional manufacturing, expand our customer base, and create value for our shareholders.”
This acquisition doubles Desktop Metal’s global distribution network and increases its geographic sales capabilities to 68 countries around the world. This means that the metal AM specialist will also leverage EnvisionTec’s partners in the dental and jewelry markets, to increase the commercialization of its metal AM solutions. In the same vein, it will provide its new company a path to develop its sales network and increase revenues in vertical industries.
Although the transaction is not yet close, we are curious to discover if and how EnvisionTEC’s technology could also support DM’s Binder Jetting technology. No matter what happens, that’s a very-much needed market consolidation.
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