Desktop Metal to Buy EnvisionTEC, for $300M

Desktop Metal

Desktop Metal, Inc. (NYSE: DM), a Burlington, Massachusetts-based provider of mass production and additive manufacturing solutions, is to acquire EnvisionTEC, a global provider of volume production photopolymer 3D printing solutions for end-use parts, for $300m, consisting of a combination of cash and newly issued Desktop Metal stock.

The transaction is expected to close in the first quarter of 2021, subject to customary closing conditions.

Following completion of the acquisition, 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.

As the original inventor of digital light processing (DLP) 3D printing technology, EnvisionTEC has one of the strongest intellectual property portfolios in the area-wide photopolymer 3D printing market, counting over 140 issued and pending patents. Today, the company has over 5,000 customers across a broad range of industries, including medical devices, jewelry, automotive, aerospace, and biofabrication. In addition, the company is a leader in the dental market. Key customers include Cartier, Celgene, Ford, Hasbro, Oral Arts, Stuller, and Smile Direct Club.

In addition, EnvisionTEC has a broad library of over 190 materials, featuring photopolymer resins with material properties in-line with or exceeding those of thermoplastics and multiple FDA-listed and 510(K)-cleared resins for the manufacturing of medical devices. It brings a compelling product portfolio for producing photopolymers under Desktop Metal’s umbrella, including the new Envision One and Xtreme 8K printing platforms designed for cost-effective volume production. The Xtreme 8K platform, which is expected to begin commercial shipments in the first quarter of 2021, features the largest build area among production-grade DLP printers. The Envision One platform, which includes models for dental, medical, and industrial segments and for high temperature resins, leverages patented continuous digital light manufacturing (cDLM) and domeless basement technologies to deliver high-speed, end-use parts production with exceptional accuracy.

EnvisionTEC is also a pioneer 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.

The acquisition more than doubles Desktop Metal’s global distribution network and increases its geographic sales capabilities to 68 countries around the world. EnvisionTEC adds a robust set of vertically-focused partners in the dental and jewelry markets, which Desktop Metal plans to leverage to sell its metal additive manufacturing solutions. In addition, 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.

Through this acquisition, Desktop Metal will gain digital casting capabilities via EnvisionTEC’s industrial-scale robotic additive manufacturing (RAM) product platform. Desktop Metal plans to advance the performance of this platform with the proprietary and patent-pending Single Pass Jetting™ technology originally developed for its Production System™ to drive productivity enhancements and improve part economics across builds as large as 1.8 x 0.9 x. 0.9 meters.

Led by Ric Fulop, Founder and Chief Executive Officer, Desktop Metal is accelerating the transformation of manufacturing with an expansive portfolio of 3D printing solutions, from rapid prototyping to mass production.

FinSMEs

15/01/2020