The self-proclaimed consolidator strikes
Desktop Metal to acquire Envisiontec
2020/01/22 — Early on, co-founder and CEO Ric Fulop had concrete ideas for the $500 million that Desktop Metal's IPO brought into the US company's coffers. Already in 2020, he announced he plans »to be a consolidator« of the AM industry, »which is highly fragmented today.«
Now, Fulop has already been able to implement its consolidation plans: In mid-January, Desktop Metal announced the acquisition of Envionstec for the price 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. 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.
The acquisition more than doubles Desktop Metal’s global distribution network and increases its geographic sales capabilities to 68 countries. 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.
»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,« said Ric Fulop. »Bringing the two companies together will deliver a global footprint of customers that can cross-benefit from our combined technology platforms,« said Siblani.
Acquiring a History of Innovation
As the original inventor of digital light processing (DLP) 3D printing technology, Envisiontec has a strong intellectual property portfolio, counting over 140 issued and pending patents.
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. The company also works together 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.