3-D printing company Markforged is merging with One, a SPAC (special purpose acquisition company) led by technology industry veteran Kevin Hartz. The expected result: Markforged will go public. Shares will be listed on the New York Stock Exchange under the ticker symbol MKFG.
A SPAC or “blank check” company (such as One) is designed to raise funds in an initial public offering (IPO) with the aim of acquiring a private business. The acquired private company (in this case, Markforged) then becomes publicly held as result of the merger, Reuters notes.
ChannelE2E has been tracking more than 30 technology-focused SPACs since January 2021. We believe SPAC organizations may acquire MSP software companies as soon as this year (2021).
While SPACs offer a fast-path for companies to go public, there's also a risk of a SPAC bubble since so many SPACs are raising money to acquire and/or merge with privately held businesses.
Markforged, SPAC Merger: 3-D Printer M&A Details
More than 10,000 facilities across 70 countries leverage Markforged’s products. The company has printed more than 10 million parts, and in 2020 generated revenue of approximately $70 million. The combined company will have an estimated post-transaction equity value of approximately $2.1 billion at closing.
Marketforged's platform combines 3D printers with industrial-grade materials and cloud-based machine learning software, providing modern manufacturers with "the resources to create more resilient and agile supply chains while saving time and money," the companies say.