Desktop Metal Acquires Envisiontec for $300 Million

Desktop Metal revealed this morning its plans to acquire 3D printing firm EnvisionTEC. Established in Germany in 2002, EnvisionTEC focuses on additive manufacturing using photopolymers, positioning its innovations as more competitive with companies like Carbon – a leading name in 3D printing – than Desktop Metal’s current product line.

This acquisition occurs following Desktop Metal’s move to become a publicly traded company last August, aligning with the increasing prevalence of SPAC mergers. Before this, the company successfully secured substantial funding, quickly achieving unicorn status after receiving $430 million in investments. The company will be investing $300 million in the purchase of EnvisionTEC, utilizing a mix of cash and company stock.

This presents significant growth opportunities for Desktop Metal. EnvisionTEC possesses the core technology capable of printing with over 190 different materials, and Desktop Metal can provide the resources needed to broaden the reach of that technology beyond what EnvisionTEC could achieve independently.

The dental industry represents a particularly important aspect of this acquisition. It’s a prominent and readily apparent application for high-volume 3D printing – and the company currently serves approximately 1,000 dental clients, including well-known businesses such as Smile Direct Club. During the COVID-19 pandemic, the company saw a threefold increase in shipments of its Envision One dental printers compared to the prior year.

“The technology is applicable to a wide range of dental procedures, from restorations to same-day, full arch implants,” explains Ric Fulop, CEO of Desktop Metal, in an interview with TechCrunch. “Traditionally, obtaining dentures requires a three-week waiting period for implants. This is the first solution that allows for same-day results, and it’s cost-effective.”

According to a recent press release, other current clients of EnvisionTEC include Ford and Hasbro. Fulop states that the company will continue to function as a separate division following the acquisition, which is anticipated to be completed this quarter.

“We will be able to utilize their existing distribution network,” the executive notes. “We anticipate building upon this capability and employing our network to provide them with a more comprehensive suite of solutions encompassing metal, composites, biomaterials, and now photopolymer printing.”