Markforged
Markforged Digital Forge
Markforged has announced a definitive agreement to merge with special purpose acquisition company (SPAC) ‘one’ and go public on the New York Stock Exchange under the MKFG ticker symbol.
The combined company is set to have a post-transaction equity value of around $2.1 billion at closing with approximately $400m in net cash to fund a growth strategy that will see the development of new products, proprietary materials and customer use cases. Upon closing of the merger, which is expected in the summer of 2021, one founder and CEO Kevin Hartz will join Markforged’s board with Shai Terem continuing as President and CEO. Markforged founder Greg Mark also remains Chairman of the company.
Founded in 2013, Markforged has brought to market a series of desktop and office friendly composite and metal 3D printing technologies, backed up by a growing portfolio of materials and software developments like Digital Forge and Blacksmith. The company says it has products installed in 10,000 facilities across 70 countries, printing more than 10 million parts across the product development lifecycle and generating revenue of approximately $70m in 2020. It also has more than 170 issued and pending patents.
Markforged has decided becoming a public company is the best way to now move froward and accelerate its growth. The Board of Directors at both Markforged and one have approved the merger unanimously, with the deal set to close subject to the approval of both one and Markforged stockholders and regulatory approvals, as well as and other customary closing conditions.
“Our mission and vision are to reinvent manufacturing by bringing the power and agility of connected software to the world of industrial manufacturing. Today is a pivotal milestone as we progress towards making that vision a reality,” commented Shai Terem, President and CEO of Markforged. “We’ve been at the forefront of the additive manufacturing industry, and this transaction will enable us to build on our incredible momentum and provide capital and flexibility to grow our brand, accelerate product innovation, and drive expanded adoption among customers across key verticals. We’re focused on making manufacturing even better by capitalising on the huge opportunity ahead, and we are making this important leap through our new long-term partnership with Kevin Hartz and the entire team at one, a group of seasoned founders and operators with unparalleled experience. Their expertise and guidance will be invaluable as we continue to reinvent manufacturing today, so our customers can build anything they imagine tomorrow.”
“Markforged has already reinvented the additive manufacturing industry and is well-positioned for robust growth benefiting from the velocity of digitisation,” added Hartz. “When launching one, our priority was to partner with a company with exceptional founders, visionaries and operators taking a differentiated approach in large and growing markets – Markforged ticked all of those boxes and more. We’re thrilled to be working closely with the entire Markforged team, comprised of highly engaged founders, visionary leaders and world-class engineers, uniquely positioned to lead a revolution in modern manufacturing.”
“When I co-founded Markforged, our mission was to reinvent manufacturing by driving innovation and creating products and technologies that have the potential to transform an entire industry,” offered Mark. “I’ve been thrilled that Markforged has thrived in its successful pursuit of these ambitions with a growing network of customers across major sectors and around the world. As we take Markforged to the next level, we have found the ideal partner in one. Kevin and his team recognise not only Markforged’s ability to transform the way businesses innovate, but also the brilliant, passionate employees that make this company so unique.”
The transaction will raise Markforged’s value above $2B, while also providing $425m in gross proceeds to the company assuming no redemptions by one shareholders, including a $210 million PIPE at $10.00 per share from investors including Baron Capital Group, funds and accounts managed by BlackRock, Miller Value Partners, Wasatch Global Investors and Wellington Management, as well as commitments from M12 – Microsoft’s Venture Fund and Porsche Automobil Holding SE, existing Markforged shareholders.
Current Markforged shareholders are expected to hold approximately 78% of the issued and outstanding shares of common stock immediately following the closing. The transaction, which has been unanimously approved by the boards of directors of both Markforged and one, is expected to close in the summer of 2021, subject to the approval of both one and Markforged stockholders and regulatory approvals, as well as and other customary closing conditions.
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