Desktop Metal has acquired EnvisionTEC with the aim of disrupting the additive manufacturing market on a global scale.
Announced on Friday, the purchase has been agreed for $300 million, made through a combination of cash reserves and Desktop Metal stock.
Burlington, Massachusetts-based Desktop Metal is a provider of 3D printing solutions for the manufacturing sector, including prototype creation, tooling, and equipment designed to cut down the cost and improve the speed of additive manufacturing.
Founded in 2002, EnvisionTEC has headquarters in Michigan and Germany and is a provider of 3D printers for professional purposes. The company sells over 30 printers able to turn digital files into physical products and accounts for over 5,000 customers worldwide in markets including the medical field, dentistry, the automotive industry, and aerospace.
The company specializes in digital light processing (DLP) solutions and accounts for over 140 accepted and pending patents, as well as over 190 3D printing-suitable materials, a substantial portfolio that has likely engaged Desktop Metal's interest -- alongside its established global footprint.
"EnvisionTEC 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 companies say.
Desktop Metal's global distribution network will double through the acquisition, and according to the company, will also boost sales capacity to be able to cater to 68 countries worldwide. The firm intends to try and scale up sales in the industrial, education, and R&D sectors.
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Once the deal has been finalized, EnvisionTEC will act as a Desktop Metal subsidiary. The current founder and CEO Al Siblani will stay at the helm of the acquired company.
"Bringing the two companies together will deliver a global footprint of customers that can cross-benefit from our combined technology platforms," Siblani commented. "I believe we have many opportunities to scale the business, disrupt traditional manufacturing, expand our customer base, and create value for our shareholders."
The transaction is expected to close in the first quarter of 2021, pending regulatory approval.
In other acquisition news this week, IBM acquired Taos, a multi-cloud consulting and managed services firm with a substantial presence in the North American market.
The financial terms of the deal were not disclosed, but IBM said that the purchase would further its goals in expanding its hybrid cloud platform business.
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