Höganäs Announces Divestment of Digital Metal to Markforged
Höganäs has announced that it has signed an agreement to divest Digital Metal, a binder-jetting additive manufacturing (AM) technology producer, to Markforged, Watertown, Massachusetts.
The divestment is in line with Höganäs’ strategy to further focus and increase activities within the metal powder side of AM. The divestment will strengthen Höganäs’ position for increased investments and acquisitions in the AM metal powder space.
The addition of Digital Metal furthers Markforged’s strategy to solve manufacturing challenges for industrial customers at the point of need, extending Markforged’s capabilities into high-throughput production of metal additive parts.
Markforged sees powder binder-jetting as a highly scalable additive manufacturing technology for production grade parts using a variety of metal materials. Digital Metal’s solution is designed to provide high-precision and reliability.
“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,” said Shai Terem, president and CEO of Markforged. “The Digital Metal team has created a robust and scalable solution that complements our existing technologies.”
Founded in 2003, Digital Metal is a wholly-owned subsidiary of Höganäs AB and the creator of a proprietary binder-jetting AM technology. Markforged sees significant opportunities to further accelerate Digital Metal adoption through integrated software capabilities and a global go-to-market engine.
As part of the transaction, Markforged will pay Höganäs approximately $32 million in cash, approximately 4.1 million shares of Markforged common stock, and approximately $1.5 million in cash to settle certain intercompany balances, subject to certain adjustments. The acquisition of Digital Metal is expected to close during the third quarter of 2022, subject to customary conditions.