Strategic Combination Broadens Capabilities, Doubles Addressable Market and Diversifies Revenues
Ventura, California, August 5, 2020 - Nexa3D, the maker of ultra-fast stereolithography production 3D printers, and NXT Factory, the pioneer of Quantum Laser Sintering (QLS™) 3D printers for mass production, announced today that they have entered into a definitive agreement whereby Nexa3D will acquire all of the outstanding shares of NXT Factory. The combination of these two complementary high-speed technologies brings together a powerful portfolio of production grade photoplastic and thermoplastic materials and uniquely positions Nexa3D for accelerated growth in the fast-growing and dynamic additive manufacturing space. The acquisition adds a full range of supply chain-approved, powder fusion plastics to Nexa3D's product line, effectively doubling the company's addressable market to over $10 billion and elevating its advantages over traditional manufacturing.
"We are very excited to bring together two complementary additive manufacturing disruptors that are united in their pursuit of breaking speed, performance and productivity barriers in additive manufacturing," said Avi Reichental, Co-founder, Chairman and CEO of Nexa3D. "We believe that the perfect strategic fit between our businesses and products, combined with the expanded capabilities in product development, channel coverage, manufacturing and marketing, will result in significant revenue and accretive growth potential. Given the resounding validation that the 3D printing industry has received during the course of the global community's response to the Covid-19 pandemic, this is the right time for us to take this decisive step to realize the combined potential that this acquisition presents for the benefit of our expanding customer base, partners and stakeholders," continued Reichental.
"We are thrilled to join forces with Nexa3D and together unleash the power and potential of our products," said Kuba Graczyk, Co-founder and CEO, NXT Factory. "COVID-19 propelled both of our companies to demonstrate the unique capabilities of our complementary additive manufacturing power as we quickly ramped into full production of personal protective equipment for frontline healthcare workers. This crisis has helped showcase the incredibly rapid and flexible nature of our combined additive manufacturing capabilities compared to traditional manufacturing and demonstrates how vulnerable the global manufacturing supply chain is to unexpected disruptions. Together, we are committed to taking additive manufacturing to the next level and realizing its full potential."
The strategic benefits of this acquisition include:
• combining highly complementary ultrafast photoplastic and thermoplastic additive technologies and opening access to 100% of the available polymer applications;
• uniting synergistic technologies under experienced leadership, doubling addressable market to over $10B, diversifying revenue streams and accelerating growth;
• adding a portfolio of supply chain-approved, powder fusion plastics that deliver significant advantages over traditional manufacturing, addressing supply chain fragilities exposed by the COVID-19 pandemic; and
• leveraging Nexa3D's global channel access in key markets and strategic relationships with leading materials suppliers.
"Stereolithography (SLA) and Selective Laser Sintering (SLS) are the cornerstones of additive manufacturing of plastics, so I am honored and proud to be part of the team that is uniting the two companies that are taking both technologies to their full potential," said Tomasz Cieszynski, Co-founder and CTO of NXT Factory. "Having worked side by side with the Nexa3D team over the past four years in Ventura, California, sharing facilities, exhibiting jointly at tradeshows, witnessing untold technological breakthroughs and rapid expansion, there is no doubt in my mind that this is the perfect match for both of our companies. I am excited to join this dream team and contribute towards the creation of a leading fourth generation additive manufacturing powerhouse."
"We are fortunate to be able to take this bold step right now, in the middle of a global pandemic, and set Nexa3D up for accelerated growth," said Izhar Medalsy, COO of Nexa3D. "During this unprecedented period, we continued to build a world class reseller channel, introduced several game-changing industrial and medical grade materials and forged powerful partnerships while delivering much needed PPE to frontline responders. We believe that our ability now to augment our organic growth plan with strategic additions will increase our marketplace attractiveness and relevance in the post-pandemic world, particularly within our targeted verticals, including healthcare, manufacturing, aerospace and mobility industries, while adding an unmatched product portfolio that our global reseller channel is asking for."
The transaction has been approved by the boards of directors and the stockholders of both companies, and is expected to be completed as promptly as practicable, subject to customary and deal-specific closing conditions being met. Details of the transaction were not disclosed.
Nexa3D makes ultrafast industrial grade stereolithography 3D printers and high-performance polymers affordable for professionals and businesses of all sizes. The company's printers are powered by proprietary Lubricant Sublayer Photo-curing (LSPc) technology and patented structured light matrix capable of reaching top speeds and industrial productivity, drastically reducing 3D printing cycles of precision functional parts from hours to minutes. To learn more, visit www.nexa3d.com.
About NXT Factory
NXT Factory makes ultrafast selective laser sintering production systems that manufacture thermoplastics for mass production application. The company's printers are powered by proprietary Quantum Laser Sintering (QLS™) technology that delivers functional durable parts for aerospace, automotive, durable goods defense and prototyping applications at injection molding quality and scale. For more information, visit www.NXTFactory.com.