EnvisionTEC’s Category-leading Product and
IP Portfolios Expand Desktop Metal’s Reach to Photopolymer 3D
Printing, Digital Biofabrication, and Digital Casting Markets,
Offering Go-to-Market Synergies Via Robust, Vertically-Focused
Dental and Jewelry Channels
Desktop Metal, Inc. (NYSE: DM), a leader in mass production and
turnkey additive manufacturing solutions, today announced the
signing of a definitive agreement to acquire EnvisionTEC, a leading
global provider of volume production photopolymer 3D printing
solutions for end-use parts, for total consideration of $300
million, 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.
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the full release here:
https://www.businesswire.com/news/home/20210115005221/en/
EnvisionTEC is a leader in the dental
market with over 1,000 dental customers now using its printers for
end-use parts. (Photo: Business Wire)
“I’m thrilled to partner with Al and the EnvisionTEC team to
bring significant growth to the additive market,” said Ric Fulop,
Founder and Chief Executive Officer of Desktop Metal. “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.”
“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,” said Siblani. “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.”
Acquiring a Category Leader with a History of
Innovation
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,
which Desktop Metal believes includes blocking intellectual
property.
Today, EnvisionTEC 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, more than tripling the number of Envision One
dental shipments from 2019 to 2020 and with over 1,000 dental
customers now using its printers for end-use parts. Key customers
include Cartier, Celgene, Ford, Hasbro, Oral Arts, Stuller, and
Smile Direct Club. In addition to extensive customer adoption,
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. The
company augments its robust proprietary material development
efforts with a selectively open business model, leveraging
relationships with major chemical companies such as Henkel Loctite,
DSM Somos, Detax, Keystone, and Arkema to sell third-party,
industry-validated resins for use with its additive manufacturing
platforms.
Expanding a Unified Product Portfolio Across Metals,
Composites, and Polymers
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 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 Xtreme 8K leverages patented projection array
technology and is capable of delivering build speeds up to 100
times those of legacy thermoplastic 3D printers (1) and at a
fraction of the hardware price of comparable solutions. 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.
Scaling Distribution and Access to New Verticals Through
Complementary Channels
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.
Leveraging Desktop Metal Technology to Advance Digital
Casting Solutions
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 mold cores and investment casting patterns for foundry
applications using either Polymethyl Methacrylate (PMMA) or silica
sand. Desktop Metal plans to significantly 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.
Conference Call Information
Desktop Metal will host a conference call on January 15, 2021 at
8:15 a.m. ET to discuss the transaction. The conference call will
be webcast simultaneously to the public through a link on the
Investor Relations section of Desktop Metal’s website,
www.ir.desktopmetal.com.
About Desktop Metal
Desktop Metal, Inc., based in Burlington, Massachusetts, is
accelerating the transformation of manufacturing with an expansive
portfolio of 3D printing solutions, from rapid prototyping to mass
production. Founded in 2015 by leaders in advanced manufacturing,
metallurgy, and robotics, the company is addressing the unmet
challenges of speed, cost, and quality to make additive
manufacturing an essential tool for engineers and manufacturers
around the world. Desktop Metal was selected as one of the world’s
30 most promising Technology Pioneers by the World Economic Forum
and named to MIT Technology Review’s list of 50 Smartest
Companies.
For more information, visit www.desktopmetal.com.
About EnvisionTEC
EnvisionTEC is a leading global provider of professional-grade
3D printing solutions. Founded in 2002 with its pioneering
commercial DLP printing technology, EnvisionTEC now sells more than
30 printer configurations based on five distinct technologies that
build objects from digital design files. The company’s premium 3D
printers serve a variety of medical, professional and industrial
markets, and are valued for precision, surface quality,
functionality and speed.
For more information, visit www.envisiontec.com.
Forward Looking Statements
This communication relates to a proposed business combination
transaction between Desktop Metal, Inc. (“Desktop Metal”) and
EnvisionTEC, Inc. (“EnvisionTEC”). This communication includes
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other
than statements of historical facts contained in this
communication, including statements regarding the anticipated
benefits of the proposed transaction, anticipated impact of the
proposed transaction on Desktop Metal’s future results of
operations and financial position, the amount and timing of
synergies from the proposed transaction, the anticipated closing
date, and other aspects of Desktop Metal’s operations or results,
are forward-looking statements. These statements involve known and
unknown risks, uncertainties and other important factors that may
cause actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. In some
cases, you can identify forward-looking statements by terms such as
“may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,”
“intend,” “target,” “project,” “contemplate,” “believe,”
“estimate,” “predict,” “potential” or “continue” or the negative of
these terms or other similar expressions. The forward-looking
statements in this communication are only predictions. Desktop
Metal has based these forward-looking statements on current
information and management’s current expectations and beliefs.
These forward-looking statements speak only as of the date of this
communication and are subject to a number risks and uncertainties,
including, without limitation, the following: the impact of the
COVID-19 pandemic on Desktop Metal’s and EnvisionTEC’s business,
including their suppliers and customers; the effect of the
transaction (or announcement thereof) on the ability of Desktop
Metal or EnvisionTEC to retain and hire key personnel and maintain
relationships with customers, suppliers and others with whom they
do business; risks that the transaction disrupts current plans and
operations; the ability of Desktop Metal and EnvisionTEC to
consummate the proposed transaction in a timely manner or at all,
including the ability to secure regulatory approvals; impact to
Desktop Metal’s business if the transaction is not consummated;
successful integration of Desktop Metal’s and EnvisionTEC’s
businesses and realization of synergies and benefits; the ability
of Desktop Metal to implement business plans, forecasts and other
expectations following the completion of the transaction; risk that
actual performance and financial results following completion of
the transaction differ from projected performance and results; and
business disruption following the transaction. This list of risks
and uncertainties is not exhaustive. For additional information
about other risks and uncertainties that could cause actual results
of the transaction to differ materially from those described in the
forward-looking statements in this communication, and of Desktop
Metal’s business, financial condition, results of operations and
prospects generally, please refer to Desktop Metal’s reports filed
with the Securities Exchange Commission (“SEC”), including without
limitation the “Risk Factors” and/or other information included in
the Form 8-K to be filed by Desktop Metal in connection with the
transaction, the S-4 Registration Statement filed with the SEC on
September 15, 2020, the S-1 Registration Statement filed with the
SEC on December 23, 2020, and such other reports as Desktop Metal
has filed or may file with the SEC from time to time. The
forward-looking statements included in this communication are made
as of the date hereof. Except as required by applicable law,
Desktop Metal will not update any forward-looking statements to
reflect new information, future events, changed circumstances or
otherwise.
(1) Based on print time estimates for professional and
industrial extrusion-based 3D printers and using comparable layer
thickness and materials.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210115005221/en/
For Desktop Metal Investor / Media
Relations Lynda McKinney press@desktopmetal.com Investor Relations Mike Callahan / Tom Cook
DesktopMetalIR@icrinc.com
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