Xometry acquires Thomas for $300 million to expand global buyer and seller base

Global manufacturing marketplace Xometry has acquired product sourcing, supplier selection, and digital marketing leader Thomas in a deal valued at $300 million.

The move is expected to significantly expand Xometry’s buyer and seller base and, in turn, further enhance its global digital marketplace for manufacturers. The firm will also leverage Thomas’ marketing and data services to provide sellers with end-to-end services complemented with fintech and digital marketing products. 

“Xometry and Thomas share a common mission of championing the digital transformation of the manufacturing industry, one of the largest sectors of the global economy and the foundation for innovation everywhere,” said Randy Altschuler, CEO of Xometry. “Thomas brings strong brand equity, trusted and extensive relationships, proprietary data, and advanced full-funnel marketing services – assets that perfectly complement our digital marketplace.

“Together, we will introduce new services, cross-sell to our combined base and expand our suite of products, particularly in fintech and digital marketing.”

The acquisition will enhance Xometry's global digital marketplace. Photo via Xometry.
The acquisition will enhance Xometry’s global digital marketplace. Photo via Xometry.

Xometry’s upwards growth trajectory

Through its global manufacturing network, Xometry provides an array of 3D printing, CNC machining, injection molding and design services. As of last year, the firm had raised a total of $193 million through a series of investments to rapidly expand its platform, which has since been bolstered by a $252 million Initial Public Offering (IPO) on the NASDAQ. 

Xometry has also been busy on the acquisition front recently, using some of the money gained from its IPO to acquire waterjet and laser cutting service provider Big Blue Saw and Manufacturing Execution System (MES) software firm FactoryFour.

In its Q3 2021 financials, the firm revealed its revenue grew by 35% during the period in line with a drastic surge in its number of active users. The results were welcomed by Xometry as “outstanding” at a time of rising competition between 3D printing service bureaus, where the likes of Shapeways, Protolabs, Fast Radius, and others all seeking to gain a greater share of the market. 

Upon the release of the company’s financials, Altschuler said the firm was expanding in the UK, France, and Italy, and plans to launch in the Asia Pacific region early next year. 

A message from NASDAQ welcoming Xometry to its stock exchange.
A message from NASDAQ welcoming Xometry to its stock exchange. Photo via Xometry.

Enhancing Xometry’s digital marketplace

Through the acquisition of Thomas, Xometry is hoping to rapidly expand its buyer and seller base and bolster its global digital marketplace for its manufacturing customers. 

Thomas’ industry-leading platform currently boasts more than 1.3 million registered users, including 93 percent of Fortune 500 companies. The platform is used by more than 500,000 commercial and industrial sellers, with 45,000 of these being diversity-certified sellers. 

Each year, the platform sees more than 20 million sourcing sessions initiated, which generate extensive first-party buyer intent data across a wide range of sectors. Xometry will look to leverage Thomas’ marketing and data services to provide its customers with a suite of end-to-end services for sellers, bolstered by additional fintech and digital marketing products.

“Thomas has a long and proud history of bringing active buyers and sellers together on our platform and providing the date and marketing services that inform decision-making,” said Tony Uphoff, President and CEO of Thomas. “In joining forces with Xometry, we’re uniting our products with the power of the Xometry marketplace so we can do even more for industry together.”

Xometry expects the acquisition to accelerate its path to profitability. Image via Xometry.
Xometry expects the acquisition to accelerate its path to profitability. Image via Xometry.

Terms of the deal

The deal will see Xometry acquire Thomas on a cash-free, debt-free basis for a value of $300 million, subject to customary adjustments. The $300 million will be broken down into $198.5 million in cash and $101.5 million in Xometry’s Class A common stock. 

Goldman Sachs & Co acted as the financial advisor of the transaction, while BakerHostetler acted as Xometry’s legal advisory. DC Advisory US as the financial advisor and Winston & Strawn as the legal advisor to Thomas.

Xometry expects the acquisition to immediately feed into the firm’s gross margin and adjusted EBITDA margin, and to also accelerate the firm’s path to profitability. Through the deal, Xometry predicts it will achieve full-year profitability in 2023. 

In terms of anticipated revenue, the acquisition is expected to give way to a pro forma company revenue growth rate that is consistent with Xometry’s expected revenue growth on a standalone basis next year. 

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Featured image shows the acquisition will enhance Xometry’s global digital marketplace. Photo via Xometry.