Following a rumor which emerged earlier this month, 3D printer manufacturer VELO3D has now confirmed that it has entered into a definitive agreement to go public via a SPAC merger with blank check company JAWS Spitfire Acquisition Corporation.
The deal is expected to complete in H2 2021, at which point the combined entity is likely to be valued at $1.6 billion on the New York Stock Exchange (NYSE) under the ticker “VLD”. The transaction is also expected to provide around $500 million in cash proceeds for VELO3D to continue its growth.
“VELO3D partners with the world’s most innovative companies leading the future of space travel, transportation and energy,” said Benny Buller, Founder and CEO of VELO3D. “I am proud that such visionary partners continue to trust VELO3D to build products through methods that were previously impossible. With JAWS Spitfire’s long-term partnership, we expect to extend the reach of VELO3D’s technology and bring its solutions to even more customers globally.”
Where does VELO3D go from here?
VELO’s growth strategy will focus on the high value metal parts that only its support-free metal 3D printing technology can produce. With the high-volume Sapphire XC 3D printer set to ship in Q4 2021, the company estimates its total addressable market to stand at over $100 billion.
Of the $500 million the VELO expects to raise, $345 million will come in the form of proceeds from JAWS Spitfire’s cash in trust and $155 million will come from a private placement of common stock at $10 per share. The private placement will be led by strategic and institutional investors such as Baron Capital Group and Hedosophia. VELO has stated that the additional capital will go towards technological development, sales, marketing, and customer support.
“Benny and the VELO3D team have placed technical innovation at the core of their business model, and we are excited to partner as they bring their technology to a broader set of similarly innovative customers across the world,” said Barry Sternlicht, Co-Founder and Chairman of JAWS Spitfire. “Since commercialization, VELO3D has attracted an impressive customer base, showcasing the seamless, cost-competitive production of previously unattainable designs.”
Subscribe to the 3D Printing Industry newsletter for the latest news in additive manufacturing. You can also stay connected by following us on Twitter and liking us on Facebook.
Looking for a career in additive manufacturing? Visit 3D Printing Jobs for a selection of roles in the industry.
Featured image shows a rendering of a Sapphire 3D printer production facility. Image via VELO3D.
