Today we welcome ExOne to the Desktop Metal family to create the leading additive manufacturing portfolio for mass production. With this acquisition, we are taking a major step in delivering on our vision of accelerating the adoption of AM 2.0. https://t.co/LsN6xIQPcm pic.twitter.com/k23gI7efib
— Desktop Metal (@DesktopMetal) August 11, 2021
Desktop Metal Inc (NYSE: DM ) announced that it will acquire rival 3D printing firm The ExOne Company (Nasdaq: XONE ) in a $575 million cash-and-stock deal that the companies said will accelerate additive manufacturing for mass production.
Under the terms of the agreement announced Wednesday, Desktop Metal will pay $25.50 per share — $8.50 in cash and $17.00 in stock — for each ExOne share, a 47.6% premium to ExOne’s closing price on Aug. 11.
After the transaction’s expected close in the fourth quarter of the year, current Desktop Metal shareholders will own between 85% and 88% of the combined entity, while ExOne shareholders will retain between 12% and 15%.
Desktop Metal and ExOne each touted the deal as a marriage between two of 3D printing’s biggest binder jet system manufacturers that will “enable broader access to additive manufacturing solutions for businesses of all sizes.”
Ric Fulop, founder and chief executive officer of Boston-based Desktop Metal, said in a statement, "We believe this acquisition will provide customers with more choice as we leverage our complementary technologies and go-to-market efforts to drive continued growth."
John Hartner, chief executive officer of Pennsylvania-headquartered ExOne, added, “We believe our complementary platforms will better serve customers, accelerate adoption of green technologies, and drive increased shareholder value. Most importantly, our technologies will help drive important innovations at meaningful production volumes that can improve the world.”
The press release announcing the agreement noted that Kent Rockwell, ExOne’s chairman and largest shareholder, has entered into a support agreement in which he will vote his 4.2 million shares in favor of the transaction.
In a statement, Rockwell said the deal “is a game-changing moment for the additive manufacturing community.”
Since Desktop Metal went public in December 2020 via a merger with special purpose acquisition company Trine Acquisition, it has been trying to grow its 3D printing portfolio.
The company has sold its trademark 3D printing system for metal to a range of clients in the automotive, aerospace and consumer products industries including such companies as General Motors Company and Volkswagen AG.
ExOne’s various industrial 3D printers serve similar industries, such as aerospace, medical and defense. It also manufactures portable 3D printing factories, which TechCrunch noted are “effectively mobile additive manufacturing stations built inside of shipping containers.”
Desktop Metal is being advised by Credit Suisse Securities and Latham & Watkins LLP, while ExOne’s advisors are Stifel and McGuireWoods LLP.
Source: Equities News