08-11-2021: Desktop Metal announced the acquisition of ExOne

ExOne was a pioneer in metal Binder Jetting technology with ~25 years market experience

On August 11, 2021, Desktop Metal announced it had signed an agreement to acquire all shares of ExOne, a manufacturer of metal 3D printers based on Binder Jetting technology. The acquisition was valued at $575 million. This was another significant acquisition by Desktop Metal that year; six months earlier, the company had acquired EnvisionTEC, the creator of DLP technology and one of the leaders in resin-based 3D printing.

ExOne specialized in producing industrial 3D printers using Binder Jetting technology, one of the fastest methods for fabricating parts from metal and ceramic powders. ExOne was also a direct competitor to Desktop Metal, and despite its much longer market tenure, it became the company being acquired in this transaction.

The acquisition of a company that had been in the 3D printing market for over a quarter of a century by Desktop Metal was quite surprising. However, it aligned with Desktop Metal’s strategy of steadily acquiring assets in the form of technology and resources from other companies in the market. At the time of the acquisition, Desktop Metal was one of the most well-funded companies in the history of 3D printing, with its value ranging between $2.5 and $3 billion.

Of course, we all know how this story unfolded.

While ExOne never disappointed anyone technologically (Desktop Metal’s proprietary solutions in Binder Jetting always trailed ExOne’s), the merger did not prove beneficial economically.

Desktop Metal was sold a month ago to Nano Dimension for a fraction of its previous market valuation. Moreover, recent financial reports and comments from Ric Fulop indicate that if the acquisition hadn’t taken place, Desktop Metal was facing a grim future…