Desktop Metal, Inc. (NYSE:DM) signed a definitive agreement to acquire EnvisionTEC, Inc. for $300 million on January 14, 2021. The transaction consideration includes $300 million, consisting of a combination of cash and newly issued Desktop Metal stock. Not all of the funding will be paid in cash, and Desktop Metal will only be required to pay $150 million up-front, with the rest being retained by EnvisionTEC shareholders as stock in the newly-merged company.

EnvisionTEC founder Al Siblani will continue to serve as Chief Executive Officer of the EnvisionTec business and will become a member of the board of directors and a senior executive officer of Desktop Metal upon closing of the transaction. EnvisionTEC generated revenue of $42 million and Net Income was $10.8 million in 2020. The transaction is subjected to approval of the expiration of the applicable waiting period (and any extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, customary closing conditions, regulatory approvals and third party consents.

The transaction is expected to close in the first quarter of 2021. As of January 18, 2021, the transaction is expected to close in February 2021. Ryan Maierson, John Chory, Emily Taylor, Stefan Widder, Christoph W.G. Engeler, Samuel Weiner, Tobias Klass, David Della Rocca, Tobias Leder, Sarah Gagan, Susan Kempe-Mueller, Betsy Mukamal, Jason Cruise, Erin Brown Jones, Sebastian Max Hauser, Peter Todaro, Jana Dammann de Chapto, James Barrett, Drew Levin of Latham & Watkins LLP acted as legal advisor to Desktop Metal, Inc. Karen A. Dewis, Roderic Pagel, Zackary Pullin, Daniel Ray and Benjamin A. Rosemergy of Sidley Austin LLP acted as legal advisors to EnvisionTEC.

BNP Paribas Securities Corp. acted as financial advisor to EnvisionTEC, Inc. Oppenheimer & Co. Inc. acted as financial advisor to Desktop Metal, Inc. Steve McCullough of BDO provided tax due diligence to EnvisionTec, Inc.