Desktop Metal said it will acquire 3D printing firm ExOne in a deal valued at $575 million. The acquisition gives Desktop Metal more scale and revenue in additive manufacturing.
Under the agreement, ExOne shareholders get $8.50 in cash and $17 in shares of Desktop Metal for their shares. ExOne shareholders walk away with $25.50 per share in cash and stock.
Desktop Metal went public in a special purpose acquisition company deal and has expanded into health care and other markets. Desktop Metal has been growing rapidly with second quarter sequential sales growth of 68% to $19 million. Desktop Metal reported a second quarter net loss of $43.2 million, The company has been using its capital to acquire companies such as Aerosint, Adaptive3D and Beacon Bio.
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With ExOne, Desktop Metal will add sales heads, technology and a distribution network of more than 200 channel partners. The additional scale will enable Desktop Metal to compete with bigger rivals such as 3D Systems and Stratasys.
Desktop Metal is projecting 2021 revenue of at least $100 million. ExOne had 2020 revenue of $59.25 million. For its second quarter, ExOne reported second quarter revenue of $18.8 million, up 69% from a year ago, with a net loss of $5.6 million, or 25 cents a share.
For comparison, 3D Systems is expected to deliver 2021 revenue of $593.2 million and Stratasys is expected to have sales of $589 million.
Here's an interview with Desktop Metal CEO Ric Fulop on the company's plans.