Desktop Metal Inc. agreed to acquire ExOne Co. in a transaction intended to accelerate 3D printing for mass production.
Boston-based Desktop Metal will pay a combination of cash and stock. The total deal is valued at about $575 million, the companies said on Aug. 11.
Combining the two additive manufacturing companies will “create the leading additive manufacturing portfolio for mass production,” Ric Fulop, founder and CEO of 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,” he added.
John Hartner, CEO of ExOne, North Huntinton, Pa., said the companies have “complementary platforms.”
“Our technologies will help drive important innovations at meaningful production volumes,” he said.
Under the agreement, ExOne shareholders will receive $8.50 in cash and $17 in Desktop Metal shares for each ExOne share they own. The exact share exchange will be determined shortly before the acquisition is completed. Of the $575 million total deal value, $192 million will be in cash, $383 million in Desktop Metal shares.
The companies said current Desktop Metal shareholders will own between 85 percent and 88 percent of the combined entity, with ExOne shareholders owning between 12 percent and 15 percent. Desktop Metal and ExOne said they expect the deal to close in this year’s fourth quarter, subject to shareholder votes and regulatory approval.
3D printing is evolving as a way to perform high-volume manufacturing. Both Desktop Metal and ExOne are working on projects and technology. For example, ExOne said in March that it and Ford Motor Co. had developed a patent-pending process for binder jet 3D printing and sintering of aluminum that could be used in automotive manufacturing.
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