While details of the transaction have not been disclosed, the board of directors and stockholders of both Nexa3D and NXT Factory have both approved the acquisition citing a series of strategic benefits.
Nexa3D, a vendor of stereolithography 3D printing systems, and NXT Factory, a developer of powder bed fusion machines, were both introduced to the additive manufacturing market by venture investment company XponentialWorks. Though operated independently of XponentialWorks, both Nexa3D and NXT Factory have received previous investment and guidance from the firm and have also co-exhibited at several trade shows in the past. Avi Reichental, the founder of XponentialWorks, is also a co-founder of Nexa3D, helped to ‘recruit’ and relocate the NXT Factory team to California, and was later appointed the permanent CEO of Nexa3D in August 2019.
Within a year of his tenure as Nexa3D CEO, Reichental and the respective boards of the two companies have agreed a deal that will see Nexa3D acquire all outstanding NXT Factory shares. The companies suggest the deal, in which two complementary technologies will be brought under the control of one company, will double their addressable market to over $10 billion and open access to significantly more polymer 3D printing applications. It will also allow NXT Factory’s Quantum Laser Sintering (QLS) platforms to benefit from the same global channels as Nexa 3D’s NXE stereolithography system.
“We are very excited to bring together two complementary additive manufacturing disruptors that are united in their pursuit of breaking speed, performance and productivity barriers in additive manufacturing,” commented Reichental, Co-founder, Chairman and CEO of Nexa3D. “We believe that the perfect strategic fit between our businesses and products, combined with the expanded capabilities in product development, channel coverage, manufacturing and marketing, will result in significant revenue and accretive growth potential. Given the resounding validation that the 3D printing industry has received during the course of the global community’s response to the COVID-19 pandemic, this is the right time for us to take this decisive step to realise the combined potential that this acquisition presents for the benefit of our expanding customer base, partners and stakeholders.”
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“We are thrilled to join forces with Nexa3D and together unleash the power and potential of our products,” added Kuba Graczyk, Co-founder and CEO, NXT Factory. “COVID-19 propelled both of our companies to demonstrate the unique capabilities of our complementary additive manufacturing power as we quickly ramped into full production of personal protective equipment for frontline healthcare workers. This crisis has helped showcase the incredibly rapid and flexible nature of our combined additive manufacturing capabilities compared to traditional manufacturing and demonstrates how vulnerable the global manufacturing supply chain is to unexpected disruptions. Together, we are committed to taking additive manufacturing to the next level and realising its full potential.”
“Having worked side by side with the Nexa3D team over the past four years in Ventura, California, sharing facilities, exhibiting jointly at trade shows, witnessing untold technological breakthroughs and rapid expansion, there is no doubt in my mind that this is the perfect match for both of our companies,” offered Tomasz Cieszynski, co founder and CTO at NXT Factory. “I am excited to join this dream team and contribute towards the creation of a leading fourth generation additive manufacturing powerhouse.”
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