Desktop Metal

Desktop Metal. It is an American technology company pioneering the development and sale of additive manufacturing systems, often referred to as 3D printing, for mass production. Founded in 2015 by a team including Ric Fulop and several professors from the Massachusetts Institute of Technology, the company aims to make metal and polymer 3D printing accessible for both prototyping and high-volume manufacturing. Desktop Metal went public in 2020 through a merger with a special-purpose acquisition company called Trine Acquisition Corp., and its systems are used across industries such as automotive, aerospace, and consumer goods.

History

The company was established in 2015 in Burlington, Massachusetts by a consortium of experts from Massachusetts Institute of Technology and industry veterans, with Ric Fulop, previously a partner at North Bridge Venture Partners, serving as chief executive officer. Early development was supported by substantial venture capital from firms like Kleiner Perkins, Lux Capital, and New Enterprise Associates, focusing on creating a safer and faster alternative to traditional metalworking techniques like powder bed fusion. A significant milestone was reached in 2017 with the launch of its first two product lines, the Studio System for office environments and the Production System for industrial settings. The path to the public markets was achieved in December 2020 via a business combination with Trine Acquisition Corp., a deal that valued the combined entity at approximately $2.5 billion and provided capital for aggressive expansion.

Technology and Products

Desktop Metal's portfolio is built around several proprietary additive manufacturing technologies designed for different applications. Its flagship bound metal deposition process, used in systems like the Shop System, extrudes metal parts bound in a polymer matrix, which are then sintered in a furnace, a method safer than handling loose powder metallurgy. For high-speed mass production, the company offers single-pass jetting technology, which operates similarly to inkjet printing to rapidly fuse metal powder layer by layer. The company also provides the Digital Light Processing-based Figure 4 platform for polymers and elastomers, acquired through its purchase of EnvisionTEC. These systems are supported by a suite of materials science innovations and software, including the Fabricate build preparation software, enabling production of complex parts for customers like Ford Motor Company and Lockheed Martin.

Business Operations

Headquartered in Burlington, Massachusetts, Desktop Metal operates a global footprint with research, development, and production facilities across the United States, Germany, and Israel. Its go-to-market strategy involves both direct sales and a network of authorized partners and resellers to serve a diverse international customer base. The company targets key vertical markets including the automotive industry, aviation, healthcare, and consumer electronics, providing solutions for applications from jigs and fixtures to final end-use components. Operational leadership under Ric Fulop has emphasized vertical integration, controlling the entire stack from printer hardware and printheads to software and feedstock, a strategy bolstered by its series of strategic acquisitions.

Acquisitions and Partnerships

Desktop Metal has pursued an aggressive growth-through-acquisition strategy to broaden its technology portfolio and market reach. A landmark deal was the 2021 acquisition of EnvisionTEC, a leader in photopolymer and Digital Light Synthesis printing, subsequently rebranded as ETEC. This was followed by the purchase of ExOne, a pioneer in binder jetting for sand casting and metal parts, which added complementary industrial 3D printing capabilities. Other significant transactions include buying Aidro, specializing in fluid power systems, and Adaptive3D, known for elastomeric materials. The company has also formed key partnerships, such as collaborating with Global Tungsten & Powders for material supply and working with BASF on polymer materials development, while its technology is utilized by major corporations like Stanley Black & Decker.

Financial Performance

Following its public listing on the New York Stock Exchange under the ticker symbol DM, Desktop Metal has reported rapid revenue growth driven by product sales and acquisitions, though it has concurrently invested heavily in research and development and sales and marketing, resulting in significant net losses. Financial results have been influenced by the integration costs of major purchases like ExOne and EnvisionTEC, as well as broader macroeconomic factors affecting capital expenditure in the manufacturing sector. The company's financial strategy has focused on scaling operations to achieve economies of scale and a path to profitability, with key metrics watched by analysts including quarterly revenue, gross margin, and adjusted EBITDA. Major investors have included Kleiner Perkins, Ford Motor Company, and Google Ventures.

Category:3D printing companies Category:Companies based in Massachusetts Category:Manufacturing companies of the United States