Desktop Metal, Inc. (NYSE: DM), a leader in mass production and turnkey additive manufacturing solutions, announced the signing of an agreement to acquire EnvisionTEC, a leading global provider of volume production photopolymer 3D printing solutions for end-use parts. The complete deal is valued at $300 million, consisting of a combination of cash and newly issued Desktop Metal stock.
Excited at the acquisition, Ric Fulop, Founder and Chief Executive Officer of Desktop Metal said, “I’m thrilled to partner with Al and the EnvisionTEC team to bring significant growth to the additive market. 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.”
According to EnvisionTEC founder Al Siblani, “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. 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.”
Doubling Desktop Metal’s Distribution Network
The acquisition more than doubles Desktop Metal’s global distribution network and increases its geographic sales capabilities to 68 countries around the world. Desktop Metal aims to target EnvisionTEC’s dental and jewellery markets, while Desktop Metal’s horizontally-focused channel partners will provide an outlet for distributing EnvisionTEC products and scaling its sales, particularly in industrial, education, and R&D segments.
Desktop Metal to gain Digital Casting Capabilities
Through this acquisition, Desktop Metal will gain digital casting capabilities via EnvisionTEC’s industrial-scale robotic additive manufacturing (RAM) product platform. EnvisionTEC’s RAM systems, which are available for as little as one-fourth of the price of slower legacy alternatives, use patented technology to produce mould cores and investment casting patterns for foundry applications using either Polymethyl Methacrylate (PMMA) or silica sand.
The acquisition will be completed in the first quarter of 2021, following which EnvisionTEC will operate as a wholly owned subsidiary of Desktop Metal. EnvisionTEC founder Al Siblani will continue to serve as Chief Executive Officer of the EnvisionTEC business.
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