Desktop Metal completes acquisition of ExOne

Desktop Metal, Inc. (NYSE: DM) has successfully completed its acquisition of The ExOne Company (NASDAQ: XONE) following approval by a majority of ExOne’s shareholders. The acquisition intent had been announced last August and had to go through a regulatory revision before it could be formalized. The acquisition reinforces Desktop Metal’s leadership in additive mass production.

ExOne extends Desktop Metal’s product platforms with complementary solutions to create an unparalleled AM portfolio that offers industry-leading throughput, flexibility, and materials breadth, providing customers with a variety of options to address their specific application. Desktop Metal is committed to supporting ExOne’s existing customers around the world, as well as leveraging its global distribution network alongside ExOne’s direct sales force to provide businesses of all sizes with broader access to its AM 2.0 solutions and expanding materials library.

“This acquisition is a landmark moment for the additive manufacturing industry and creates an unmatched portfolio that strengthens Desktop Metal’s ability to accelerate the adoption of AM 2.0,” said Ric Fulop, Founder and CEO of Desktop Metal. “We are proud to welcome ExOne’s talented team to Desktop Metal and to move forward as one company focused on additive mass production of end-use parts through AM. We’ve begun the process of careful integration with the goal of driving outsized growth for the combined company in the years to come. We believe Desktop Metal is uniquely positioned to provide the widest range of end-use applications, and we are excited about the value creation opportunity for our customers, partners, shareholders, and employees.”

Under the terms of the agreement, ExOne shareholders received $8.50 in cash and $16.43 in shares of Desktop Metal common stock for each share of ExOne common stock, for a total purchase price of approximately $24.93 per share, representing a transaction value of $561.3 million, including ExOne cash and cash equivalents, based on the 20-day volume-weighted average price (VWAP) of Desktop Metal common stock on November 9, 2021. Desktop Metal and ExOne notified NASDAQ of the completion of the acquisition and requested that NASDAQ file a notification of delisting with the Securities and Exchange Commission (“SEC”) on ExOne’s behalf. Desktop Metal expects that the delisting of ExOne’s common stock from the NASDAQ stock exchange will formally become effective by 5:30pm EST on November 12, 2021.

ExOne will continue to operate as a wholly-owned subsidiary of Desktop Metal and will remain headquartered in North Huntingdon, Pennsylvania. “We believe this transaction will result in improved products and services going forward, as well as access to a broader range of technologies, materials and services through Desktop Metal and its new family of companies. That expanding portfolio now includes Adaptive 3D, Aerosint, Aidro, Desktop Health, and EnvisionTEC,” said Rick Lucas ExOne Chief Technology Officer, and VP, New Markets, addressing ExOne customers and partners.

ExOne is a pioneer in binder jetting technology, with systems spanning 3D printing for metal, metal composite, ceramics, and digital casting applications. “With this acquisition, we are excited to further cement our own leadership in additive mass production, spanning a broad set of applications across hundreds of materials including metals, polymers, sand, ceramics, composites, wood, and beyond,” Fulop added in a letter to Desktop Metal customers.

“We believe we now provide you with a more comprehensive set of solutions that combine the best of both our companies, especially across the printing of end-use parts in metals and technical ceramics as well as cores and molds for digital castings. Our combined product portfolio will offer expanded choice and flexibility so you can optimize production with turnkey solutions including hardware and software based on your specific application needs in terms of speed, cost, resolution and part size.  We are particularly thrilled about the opportunity to join our materials science teams to multiply the number of available materials on our printing platforms. Working together, we will accelerate innovation in materials and systems, deliver more accessible solutions, expand our sales footprint, and enhance customer reach and support.  Together, we will drive value for our customers and partners, and expand our business into new verticals.”