Desktop Metal Acquires ExOne: Reshaping the Landscape of Metal 3D Printing and Mass Production via Binder Jetting

The dynamic world of additive manufacturing (AM) continues to evolve at an unprecedented pace, with mergers and acquisitions frequently reshaping the competitive landscape. In a significant development that underscores this trend, Desktop Metal (DM) and ExOne announced a definitive agreement yesterday for Desktop Metal to acquire all issued and outstanding shares of ExOne common stock. This landmark transaction is valued at approximately $575 million, comprising $192 million in cash consideration and $383 million in Desktop Metal shares. This strategic move is the latest in a series of high-profile acquisitions by Desktop Metal, an aggressive player that has rapidly expanded its footprint across various additive manufacturing technologies over the past few years, signaling a clear intent to dominate the industrial 3D printing market.

Indeed, the current year has been exceptionally successful and transformative for Desktop Metal. Over the past eight months, the company has executed multiple major acquisitions, strategically integrating other leading manufacturers within the additive manufacturing ecosystem. The acquisition spree began in January with the acquisition of EnvisionTEC, a prominent DLP 3D printer manufacturer, in a substantial $300 million deal. This critical acquisition allowed Desktop Metal to make a significant entry into the polymer additive manufacturing market, diversifying its offerings beyond its core metal capabilities. Several months later, Desktop Metal continued its expansion by announcing its acquisition of Aerosint. Aerosint specializes in multi-material powder-based AM solutions, providing Desktop Metal with advanced capabilities to develop and offer sophisticated multi-material 3D printing solutions, thereby expanding its technological prowess even further. Now, with the acquisition of ExOne, Desktop Metal is not only solidifying its formidable hold on the metal additive manufacturing sector but also making substantial inroads into the industrial sand 3D printing market, a niche where ExOne stands as an undisputed leader.

The Strategic Imperative: Consolidating Leadership in Mass Production Additive Manufacturing

According to an official press release from Desktop Metal, this pivotal acquisition is designed to unequivocally cement Desktop Metal’s leadership in additive manufacturing for mass production. Both companies, Desktop Metal and ExOne, have long been recognized for their innovative contributions to industrial-scale 3D printing. Intriguingly, until this point, ExOne and Desktop Metal have operated as direct competitors, particularly in the realm of industrial binder jetting metal solutions. While Desktop Metal also offers a diverse portfolio of other technologies, including its proprietary FFF (Fused Filament Fabrication) metal technology, binder jetting has always been a core focus for both entities.

Desktop Metal strongly emphasizes that this acquisition will significantly extend and enhance its existing product platforms by incorporating complementary solutions from ExOne. This strategic integration is expected to empower customers with greater flexibility and more comprehensive options, allowing them to optimize their production processes based on their unique application needs and industrial demands. ExOne, for its part, has particularly highlighted that the combination of resources, expertise, and technological capabilities will serve as a powerful catalyst for accelerating the advancement and adoption of binder jetting technology. Both companies firmly believe that binder jetting represents the true future of production metal 3D printing, offering unmatched speed, cost-effectiveness, and versatility for industrial applications.

Unlocking the Full Potential of Binder Jetting Technology

The rationale behind this acquisition lies deeply in the complementary strengths of both companies, particularly within binder jetting. ExOne has long been a recognized leader in developing and deploying binder jetting solutions for a wide range of materials, most notably metals and ceramics. Their extensive experience and deep understanding of binder jetting processes, material science, and industrial applications bring invaluable intellectual property and market insights to the combined entity. Now, this unparalleled expertise will be synergistically combined with the exceptional speed and efficiency of Desktop Metal’s proprietary Single Pass Jetting™ technology, which powers its cutting-edge production systems. This technological marriage promises to create a formidable force in the binder jetting market, pushing the boundaries of what is possible in terms of production volume, part complexity, and material diversity.

Beyond technological synergies, the acquisition also unlocks significant market expansion opportunities. The companies will be able to integrate ExOne’s established direct sales force, which has built strong relationships with key industrial clients, with Desktop Metal’s extensive global distribution network. This impressive network boasts over 200 channel partners spread across the globe, providing unparalleled reach and market penetration. By leveraging these combined sales and distribution capabilities, the unified company can significantly accelerate its mission to drive the broader adoption of metal additive manufacturing across various industries. This expanded commercial infrastructure will enable them to reach a wider customer base, educate the market on the benefits of advanced binder jetting solutions, and ultimately facilitate the industrialization of additive manufacturing on a global scale.

Driving Additive Manufacturing 2.0: The Vision for Mass Production

This acquisition is more than just a merger of two companies; it represents a significant leap towards realizing the vision of “Additive Manufacturing 2.0” – a paradigm shift from prototyping and low-volume production to true, economically viable mass production of end-use parts. Binder jetting, with its inherent advantages of speed, scalability, and material flexibility, is at the core of this vision. By combining ExOne’s deep materials expertise, particularly in challenging metals and industrial sands for tooling and casting, with Desktop Metal’s high-speed production systems and diverse portfolio (including polymers from EnvisionTEC and multi-material capabilities from Aerosint), the company is positioning itself as a comprehensive leader capable of addressing a vast array of industrial demands.

The unified entity will be able to offer a broader spectrum of binder jetting solutions, from large-scale sand molds and cores for the foundry industry (an ExOne specialty) to high-volume production of complex metal parts for aerospace, automotive, medical, and consumer products. This expanded offering means customers can choose from a wider range of systems and materials tailored to their specific applications, whether it’s producing intricate components with fine details or large, structural parts at high throughput. The emphasis will be on transforming conventional manufacturing workflows by integrating additive solutions that deliver significant advantages in terms of design freedom, supply chain resilience, and overall cost reduction for mass-produced items.

Ric Fulop, the visionary Founder and CEO of Desktop Metal, succinctly captured the essence of this monumental agreement: “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.” Fulop’s statement underscores the strategic intent to create an unrivaled portfolio designed to accelerate the industrialization of AM, moving it firmly into the realm of mass production. This merger isn’t just about combining technologies; it’s about combining market forces to educate and equip industries for the next era of manufacturing.

Closing Details and Future Outlook

The transaction is anticipated to officially close in the fourth quarter of 2021. While the acquisition received unanimous approval from the Board of Directors of ExOne, it remains subject to the final approval of ExOne shareholders. Additionally, the completion of the transaction is contingent upon the satisfaction of customary closing conditions, a standard procedure in such large-scale corporate mergers. This acquisition, once finalized, will undoubtedly create a powerhouse in the additive manufacturing space, particularly within binder jetting and metal 3D printing. It signifies Desktop Metal’s ambition to be a full-stack additive manufacturing solutions provider, capable of catering to diverse industrial needs from polymers to metals and sands, across prototyping to mass production.

This strategic consolidation is expected to have far-reaching implications for the entire additive manufacturing industry. It will likely intensify competition, foster further innovation in binder jetting technology, and accelerate the broader acceptance of 3D printing as a mainstream manufacturing method. As Desktop Metal integrates ExOne’s extensive expertise and intellectual property, the focus will undoubtedly be on delivering more robust, scalable, and cost-effective solutions to accelerate the adoption of additive manufacturing in industries demanding high-volume, high-performance parts. For stakeholders and industry observers, this represents a pivotal moment, marking a significant step towards a future where additive manufacturing is not just an alternative, but a primary method for industrial production.

What are your thoughts on Desktop Metal’s expected acquisition of ExOne and its potential impact on the future of additive manufacturing? Let us know your insights and predictions in a comment below or engage with us on our Facebook and Twitter pages! Don’t forget to sign up for our free weekly newsletter to receive all the latest 3D printing news straight to your inbox and stay ahead of the curve!

*Thumbnail Photo Credits: Desktop Metal