Since its establishment, Desktop Metal, a unicorn company in the 3D printing industry, has received a total of more than 438 million U.S. dollars (about 3 billion yuan) in investment. The latest round of investment was a 160 million U.S. dollar E round investment that occurred in early 2019, with a valuation of 15 One hundred million U.S. dollars. Carbon, another global 3D printing unicorn company, has a valuation of more than US$2 billion in 2019.
On August 27, 2020, Desktop Metal, a US-based 3D printer manufacturer, has agreed to merge with Trine Acquisition Corp to achieve the listing of the 3D printing business.
It is reported that they will be listed on the New York Stock Exchange under the stock code "DM". After listing, they will raise up to 575 million U.S. dollars (approximately 4 billion yuan) in investment, and their valuation is about 2.5 billion U.S. dollars (approximately 17 billion yuan). Desktop Metal plans to use the funds to accelerate development and help more and more companies adopt 3D printing and make the supply chain more flexible.
According to the market value ranking of global 3D printing companies, DM will exceed Materialise's market value after listing (market value of 1.97 billion US dollars, currently ranking first), becoming the world's largest 3D printing company by market value.
After Desktop Metal’s announcement, the stock prices of other metal 3D printer manufacturers have also risen. Investors believe this move is a sign of confidence in Desktop Metal’s technology.
Desktop Metal's heavy product Production System™ single-pass adhesive jet metal 3D printing technology process principle, can manufacture metal parts in large quantities at low cost
Ric Fulop, co-founder, chairman and CEO of Desktop Metal said: "We are at an important turning point in the application of additive manufacturing, and Desktop Metal is leading this transition. We are excited about the IPO and the cooperation with Trine. It will provide us with resources, accelerate the listing, and continuously strengthen our research and development efforts."
Growing confidence in metal 3D printing
Desktop Metal serves markets in 60 countries, and parts are used in industries ranging from automotive and aerospace to consumer products. During 2019, DM launched three new products, including desktop Fiber HT and LT machines, and the first metal adhesive jet 3D printing system for the workshop.
The workshop system consists of a 3D printer, a powder station and a furnace, which can be integrated into the existing CNC workshop. DM's machine can produce a batch of complex parts every 6 to 12 hours, and can 3D print up to 70 kilograms of steel per day. In order to speed up the production efficiency of the machine shop, users can use 3D printers to create various parts, reduce delivery time and reduce the cost of small batches.
Desktop Metal began shipping Studio series 3D printers in Europe in 2019. Customers include the German BMW Group, as well as the Politecnico di Milano and Add+It. Subsequently, as Desktop Metal established a cooperative relationship with injection molding manufacturer Indo-MIM and digital manufacturer Fast Radius, the application range of the technology was continuously expanded.
In recent years, investors have repeatedly recognized the potential of Desktop Metal's 3D printing technology through a series of investments. In July 2017, DM raised US$115 million to bring the metal additive system to the market, and then in January 2019, Koch Disruptive Technologies made another US$160 million in Series E investment.
Desktop Metal's independent research predicted the "second wave" of 3D printing innovation and called it "Additive Manufacturing 2.0". According to reports, with the help of Desktop Metal's metal manufacturing technology, new applications released will increase the market value of 3D printing from US$12 billion to US$146 billion by 2030. By going public, they can greatly consolidate their position in the industry.
Desktop Metal's 3D printers have been adopted by various industries, especially suitable for automotive applications.
Desktop Metal will be listed on the NYSE
Desktop Metal will go public through a business merger agreement signed with Trine Acquisition Corp., a targeted acquisition company led by Leo Hindery Jr and HPS Investment Partners. HPS Investment Partners is a global credit investment company with more than $60 billion in assets under management.
In this transaction, Trine, which currently holds $300 million in cash in the trust, will merge with Desktop Metal, with an estimated equity value of $2.5 billion. Desktop Metal’s existing shareholders will hold approximately 74% of the combined company’s shares, which translates into a valuation of US$1.85 billion.
The funds in the transaction will be funded by Trine's cash trust fund and a fully invested common stock PIPE of $10.00 per share of $275 million. Other investments will be funded by Miller Value Partners, XN, Baron Capital Group, Chamath Palihapitiya, JB Straubel and HPS Investment Partners.
According to a statement issued by Desktop Metal, the board of directors of the two companies unanimously approved the transaction. The completion of the proposed merger is subject to further approval by the shareholders of the two companies and other market conditions, but is expected to be completed in the fourth quarter of 2020.
Leo Hindery, Chairman and CEO of Trine Acquisition, said: "After evaluating more than 100 companies, we believe that Desktop Metal is the most unique and compelling opportunity. We believe that this company has the ability to become a fast-growing company. The ability of a leader in the 3D printing industry. Ric has assembled an excellent team and board of directors and is very happy to work with them to create the first IPO 2.0 pure additive manufacturing company."