Metals and carbon fiber company Markforged (best known for its Digital Forge platform) announced today that it has acquired Digital Metal to further expand its range of machines capable of producing metal parts. The company was previously owned by the Swedish metal powder manufacturer Höganäs AB.
The acquisition emphasizes Markforged’s commitment to additive manufacturing for industrial customers, and with Digital Metal’s lineup of powder-bonding extruders, the company is opening up large-scale manufacturing opportunities for high-volume metal parts.
“With the acquisition of Digital Metal, Markforged advances our vision of distributed manufacturing by enabling the reliable, large-scale production of precision metal parts at the time of need. By integrating Digital Metal’s solution into the Digital Forge platform, we can address new applications in the medical, automotive, luxury goods and other industries,” said Shai Terem, president and CEO of Markforged. “The Digital Metal team has created a robust and scalable solution that complements our existing technologies. I look forward to welcoming their talented people to Markforged.”
Originally founded in 2003, Digital Metal has made a name for itself for metal parts used in consumer products, automotive, experimental and prototyping uses. The company shares that its printers have been used to produce hundreds of thousands of parts
“Markforged’s easy-to-use platform, best-in-class software capabilities and materials expertise felt like a natural fit for the future of our technology,” said Christian Lönne, CEO of Digital Metal. “With Markforged’s experience and go-to-market scale, we are confident we can grow our technology together and help more manufacturers produce the high volumes of metal parts they need to run highly productive and cost-efficient operations. to conduct.”
As part of the transaction, Markforged will pay Höganäs approximately $32 million in cash, plus approximately 4.1 million shares of Markforged common stock. With the current Markforged share price of about $1.9, the total deal is close to $40 million in total. The companies expect to complete the merger before the end of the summer.
The industrial 3D printing space has seen some interesting evolutions lately as companies enter a consolidation phase. Protolabs acquired 3D Hubs, Desktop Metal stuck with EnvisionTEC, and Lumentum spent $5.7 billion acquiring Coherent. It’s likely we’ll see a lot more activity in these markets as the use cases for 3D continue to solidify and the industry really finds its stride.