Watertown, US – Markforged, the creator of The Digital Forge, an integrated metal and carbon fiber additive manufacturing platform, announced that it has entered into a definitive agreement with Höganäs AB to acquire Digital Metal, the creator of a leading binder jetting solution known for precision and reliability, extending Markforged’s capabilities into high-throughput metal additive part production.
Markforged’s strategy of solving manufacturing challenges for industrial customers at the point of need is strengthened by the addition of Digital Metal. Manufacturers can now produce high volumes of functional metal parts with minimal setup with this new offering. Traditional manufacturing often takes months to transition from design to manufacturing, introduces third-party supplier risk, and provides poor unit economics during ramp up and lower volumes.
Powder binder jetting is viewed by Markforged as a highly scalable additive manufacturing technology for production grade parts using a variety of metal materials. The solution from Digital Metal is intended to provide high-precision, best-in-class part quality and reliability. Powder binder jetting expands Markforged’s addressable market by solving new customer problems and complements the existing Digital Forge offering.
Digital Metal, founded in 2003, is a wholly owned subsidiary of Höganäs AB and the creator of a proprietary binder jetting AM technology. Digital Metal printers have been used to produce hundreds of thousands of parts, including parts for leaders in consumer products, academia, and the automotive industry, due to their high productivity, excellent surface quality, and superior resolution. Through integrated software capabilities and a global go-to-market engine, Markforged sees significant opportunities to accelerate Digital Metal adoption.
Markforged will pay Höganäs approximately US$32 million in cash, approximately 4.1 million shares of Markforged common stock, and approximately US$1.5 million in cash to settle certain intercompany balances as part of the transaction, subject to certain adjustments. Subject to customary conditions, the acquisition of Digital Metal is expected to close in the third quarter of 2022.
Shai Terem, President and CEO, Markforged, commented, “With the Digital Metal acquisition, Markforged is advancing our vision for distributed manufacturing by enabling the reliable, high volume production of precise metal parts at the point of need. Infusing Digital Metal’s solution into The Digital Forge platform allows us to address new applications in the medical, automotive, luxury goods, and other industries. 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.”
Christian Lönne, CEO, Digital Metal, stated, “Markforged’s easy-to-use platform, best-in-class software capabilities, and material expertise felt like a natural fit for the future of our technology. With Markforged’s experience and go-to-market scale, we are confident that we will be able to grow our technology together and help more manufacturers produce the high-volume metal parts they need to drive highly productive and cost-efficient operations.”
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