3D printer maker Markforged to go public by way of $2.1 billion SPAC deal

(Reuters) – US 3D printer maker Markforged said Wednesday it had agreed to go public through a merger with a blank check company backed by venture investor Kevin Hartz. The combined company’s equity was valued at $ 2.1 billion.

The deal with Hartz ‘Special Purpose Acquisition Company (SPAC), referred to as “One”, is expected to bring the merged company gross proceeds of approximately $ 425 million. Hart is the founder of the ticket site Eventbrite Inc.

The shares of the one SPAC, which raised $ 200 million in an IPO last year, rose 20.9% on Wednesday after the deal was announced.

Markforged announced it had sales of over 10,000 customers of $ 70 million in 2020. Its clients include RPG Industries and Caldwell Manufacturing. A ten-fold growth to 706 million US dollars per year was forecast for the year 2025.

“When we bring the one SPAC to the public, we’ll find the right partner and provide capital for our future growth as we expand into more industries and regions,” said Shai Terem, CEO of Markforged.

The proceeds from the transaction include a private investment of US $ 210 million made by Baron Capital Group, Porsche Automobil Holding SE, Microsoft Corp.’s M12 Venture Fund. and funds and accounts managed by BlackRock Inc.

Founded in 2013, Markforged, based in Watertown, Massachusetts, manufactures The Digital Forge, an artificial intelligence 3D printer that integrates metal and carbon fiber to create products.

Last year, Desktop Metal, another provider of 3D printing technology, also decided to merge with a SPAC to go public. The deal was worth $ 2.5 billion.

SPACs are shell companies that raise funds when they go public in order to make an acquisition at a later date. They serve as an alternative to a traditional IPO for companies looking to enter public markets.

Markforged will be listed on the New York Stock Exchange after the merger and will trade under the new ticker symbol “MKFG”.

Citigroup Global Markets Inc and Goldman Sachs & Co LLC are serving as financial advisers to Markforged and one respectively.

Reporting by Sohini Podder in Bengaluru and Krystal Hu in New York; Adaptation by Aditya Soni and Rosalba O’Brien