More consolidation: Desktop Metal to acquire ExOne
Just off the newswire:
Desktop Metal, a publicly-traded company, will acquire ExOne, also public, in a deal valued at $575 million. Each ExOne shareholder will get $8.50 in cash and $17 in Desktop Metal stock for each ExOne share, which implies a 48% premium to the closing price for ExOne today. Desktop Metal will use $192 million in cash and $383 million in share consideration for the deal.
Both companies make machines and materials for additive manufacturing (aka 3D printing). ExOne approached the problem from the perspective of high-cost machines using expensive (metal or stone) materials in a factory or service bureau setting. As its name implies, Desktop Metal came out first with smaller, cheaper, office-focused machines. But as the industry as a whole matures (and we move away from the “every home will have a 3D printer for coffee mugs” concept), they’re finding that their technologies are both complementary and overlapping. It’ll be interesting to see how the combined product offering shakes out.
Desktop Metal (DM) founder and CEO Ric Fulop said in a press release, “We are thrilled to bring ExOne into the DM family to create the leading additive manufacturing portfolio for mass production. 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. This transaction is a big step in delivering on our vision of accelerating the adoption of additive manufacturing 2.0.”
Since these are both public companies, there’s a lot to do before a deal closes, likely in Q4.
Both companies also reported results today for the second calendar quarter. Interestingly, Desktop Metal missed expectations while ExOne met them.