There’s big news in the corporate world: Nexa3D announced plans to acquire Essentium.
The two companies have apparently signed a letter of intent that would have Essentium’s equipment merge with Nexa3D’s growing line of 3D printers.
Nexa3D today offers two styles of 3D printers: resin-based SLA and powder-based SLS, with three models for each process. Several of the machines are suitable for serial production, particularly the SLS machines.
Essentium offers a line of high speed 3D printers capable of making production parts using a wide variety of engineering materials. In fact, the company often develops new specialty polymer filaments for their customers as required.
With this merger we will see a Nexa3D that offers three different 3D printing processes. That will provide their sales network with even greater possibilities: customers requiring FFF solutions could then buy from Nexa3D, whereas before the merger they’d have to go elsewhere.
Another important aspect of the merger is Essentium’s experience with the defense industry. They have multiple clients in that area, and have specifically designed their material strategy to be compatible with that environment. Now Nexa3D will gain access to that market through the Essentium connections.
That could eventually result in Nexa3D selling SLS or SLA equipment to defense contractors, particularly if Essentium’s materials approach is applied to those processes.
Nexa3D Co-founder, Chairman, and CEO Avi Reichental said:
“We are looking forward to welcoming the Essentium team to growing family. This acquisition will be a testament to our unwavering commitment to pushing the boundaries of 3D printing technology. By joining forces with Essentium, we aim to create synergies that will deliver unmatched value to our customers. Together, we will drive ultrafast additive manufacturing innovation and provide even more powerful solutions for manufacturers seeking to achieve their production goals.”
Essentium CEO Blake Teipel said:
“We believe that our joint expertise will disrupt the industrial 3D printing market in a profound way. Nexa3D and Essentium share a vision of empowering manufacturers to create what was once considered impossible. Our alignment will enable us to offer game-changing 3D printing solutions for our clients. When we considered potential combination partners from around the industry, we were blown away by the growth, technology, and delivery velocity underpinning Nexa3D. We feel we are joining a team of fast-movers, similar in mindset to our own, and we look forward to enabling greater adoption of industrial AM together for years into the future.”
There’s one more twist to this story: Two years ago Essentium announced they planned to “go public” and be traded on the stock exchange.
That never happened. Essentium never went public for unstated reasons. However, it’s likely they correctly foresaw the downturn in stock prices. Other companies that went public around that time have been crushed by devaluations of up to 90%. Somehow, Essentium avoided that fate.
However, they now seem to have found another way. Instead of selling the company to the public via markets, they intend on selling privately to a company: Nexa3D.
The deal is planned to close around the end of the year, pending paperwork.
