VELO3D Goes Public: Pioneering the Future of Industrial Metal Additive Manufacturing

The additive manufacturing (AM) industry has experienced an exceptionally dynamic period, particularly this year. Even before the end of March, we’ve witnessed a flurry of significant acquisitions and a notable number of companies entering the public market. This surge in activity unfolds despite recent reports, such as the Wohlers Report 2021, indicating that the global COVID-19 pandemic led to a slowdown in AM growth. However, it’s crucial to note that the industry proved remarkably resilient, suffering far less impact compared to many other sectors. In a significant piece of corporate news for the AM sector, VELO3D, a recognized leader among metal additive manufacturing solution providers, announced its definitive business combination agreement with JAWS Spitfire Acquisition Corporation. This strategic move is set to culminate in VELO3D becoming a publicly traded company on the New York Stock Exchange (NYSE), with the transaction expected to close in the latter half of 2021. This development marks a pivotal moment for VELO3D and underscores the growing maturity and investment appeal of industrial 3D printing technologies.

VELO3D’s Advanced Metal 3D Printing Technology and Strategic Partnerships

VELO3D has consistently been at the forefront of innovation in metal 3D printing, a domain we have frequently covered. The company is renowned for its groundbreaking Sapphire™ System, a sophisticated metal additive manufacturing platform designed to produce mission-critical parts with unparalleled quality and design freedom. Complementing this hardware is their proprietary 3D Flow software™, an intuitive tool specifically engineered to empower engineers. This software not only facilitates the adoption of advanced AM processes but also expertly guides users through the intricate principles of Design for Additive Manufacturing (DfAM). This integrated approach enables the creation of complex geometries and internal structures previously deemed impossible with traditional manufacturing methods, often without the need for support structures for many challenging designs.

VELO3D’s expertise and robust solutions have positioned it as a preferred partner in industries demanding the highest levels of performance and reliability, including aerospace, automotive, and energy. Their impressive client roster features industry titans such as SpaceX, Honeywell, Boom Supersonic, Chromalloy, and Lam Research. These partnerships highlight the critical role VELO3D plays in enabling next-generation engineering and product development. A prime example of their impact came just last year when Boom Supersonic’s innovative XB-1 aircraft model incorporated 21 titanium 3D printed components produced by VELO3D. These parts were vital for the aircraft’s performance, demonstrating the trust placed in VELO3D’s ability to deliver high-precision, robust components for demanding applications. Such collaborations solidify VELO3D’s reputation as a key enabler for complex, high-value industrial applications across various sectors.

Strategic Expansion and the Launch of Sapphire XC

The timing of this business combination is particularly auspicious for VELO3D, coinciding with the imminent deployment of their latest groundbreaking laser printing technology solution, the Sapphire XC. This advanced system is slated to begin shipping in the fourth quarter of 2021. The Sapphire XC represents a significant evolution of VELO3D’s existing Sapphire platform, meticulously engineered to meet the escalating demands for larger, more cost-effective production capabilities in industrial additive manufacturing. According to the company, the Sapphire XC will empower users to produce parts with up to five times higher volume and at up to three times lower cost compared to the current Sapphire technology. This dramatic improvement in throughput and economic efficiency is critical for scaling metal AM from prototyping to mass production, unlocking new possibilities for various industries seeking to leverage the benefits of 3D printing at an industrial scale.

The substantial capital infusion derived from this transaction will play a crucial role in accelerating VELO3D’s ambitious growth strategy. The company has articulated clear plans to strategically invest these additional funds across several key areas, including enhancing engineering capabilities, accelerating product development, expanding sales and marketing initiatives, and strengthening customer support services. A core focus will be on developing and refining unique products that only VELO3D can deliver within the highly competitive metal AM market. Furthermore, a significant portion of the capital will be dedicated to rapidly scaling operations to meet the surging customer demand for their advanced systems and services. The combined entity is projected to be valued at approximately $1.6 billion, a testament to the market’s confidence in VELO3D’s technology and future potential. As part of the agreement, VELO3D is set to receive up to $345 million in proceeds, which includes cash held in trust by JAWS Spitfire and a $155 million private placement of common stock at a price of $10.00 per share. Following the completion of the transaction, VELO3D’s existing shareholders will retain approximately 72% ownership of the combined company, with the remaining shares distributed among JAWS Spitfire and PIPE (Private Investment in Public Equity) investors. This financial structure is designed to provide robust funding for aggressive growth while maintaining strong alignment with existing stakeholders.

Leadership Vision and the Future of Metal Additive Manufacturing

Commenting on the definitive business combination agreement, Benny Buller, the visionary founder and CEO of VELO3D, expressed profound pride and optimism for the company’s trajectory. Buller stated, “VELO3D partners with the world’s most innovative companies leading the future of space travel, transportation and energy. I am proud that such visionary partners continue to trust VELO3D to build products through methods that were previously impossible.” This statement encapsulates VELO3D’s core mission: to enable breakthroughs in critical industries by overcoming traditional manufacturing limitations. He further emphasized the strategic benefits of this partnership, adding, “With JAWS Spitfire’s long-term partnership, we expect to extend the reach of VELO3D’s technology and bring its solutions to even more customers globally. As we scale our business and advance our growth strategy, we expect to expand the high value metal additive manufacturing market and strengthen our competitive position.” This underscores a clear strategy to not only grow VELO3D’s market share but also to collectively expand the entire high-value metal AM sector.

The continuity of leadership is a key strength in this transition. Benny Buller will continue to steer VELO3D as CEO, alongside CFO Bill McCombe, ensuring consistent strategic direction and operational excellence through this exciting next stage of growth. Their continued guidance will be instrumental in executing VELO3D’s plans for global expansion, continued technological innovation, and solidifying its position as a market leader. This strategic move to go public via a SPAC highlights a broader trend in the additive manufacturing industry, where companies are increasingly seeking access to public capital markets to fuel rapid expansion, research and development, and infrastructure investments. It signifies a growing confidence from investors in the long-term potential of industrial 3D printing to revolutionize manufacturing processes across various sectors. For more comprehensive details on the definitive business combination agreement, interested parties can refer to the official press release available HERE.

Conclusion: A New Chapter for Industrial Additive Manufacturing

VELO3D’s decision to go public marks a significant milestone not only for the company itself but also for the wider metal additive manufacturing industry. It reflects a maturing market where advanced technologies are moving beyond niche applications to become integral components of large-scale industrial production. The injection of significant capital, coupled with the strategic launch of the Sapphire XC system, positions VELO3D to dramatically accelerate its mission: to transform how high-value, complex metal parts are designed and manufactured across critical sectors like aerospace, energy, and automotive. By focusing on innovation, scalability, and cost reduction, VELO3D is poised to expand its global footprint, push the boundaries of what’s possible with metal 3D printing, and further solidify its role as a key enabler of advanced industrial solutions worldwide. This new chapter promises to bring forth even more sophisticated technologies and expand the applications of industrial 3D printing, shaping the future of manufacturing for years to come.

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