VELO3D, Inc., a major player in additive manufacturing (AM) for high value metal parts, and JAWS Spitfire Acquisition Corporation have entered into a definitive business combination agreement.
Upon completion of the transaction, which is expected to occur in the second half of 2021, the combined company will operate as VELO3D, and will be listed on the New York Stock Exchange.
The transaction values the combined company at an enterprise value of approximately $1.6bn, at the $10 per share PIPE subscription price and assuming no public shareholders of JAWS Spitfire exercise their redemption rights. VELO3D will receive up to $345m in proceeds from JAWS Spitfire’s cash in trust and a $15m private placement of common stock at a $10 per share value.
According to the US-based company, VELO3D’s proprietary full-stack 3D metal printing solution enables the production of mission-critical components for space rockets, jet engines, fuel delivery systems and energy production with better performance, at faster speed and lower cost than traditional methods.
VELO3D founder and CEO Benny Buller, “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. As we scale our business and advance our growth strategy, we expect to expand the high value metal additive manufacturing market and strengthen our competitive position.”
Last year, VELO3D raised $28m in a Series D funding round, with Japanese industrial gas manufacturer Taiyo Nippon Sanso (TNSC) among the new investors.
Barry Sternlicht, co-founder and Chairman of JAWS Spitfire, said, “Since commercialisation, VELO3Dhas attracted an impressive customer base, showcasing the seamless, cost-competitive production of previously unattainable designs. VELO3D is well-positioned for robust growth in an established and expanding market.”