SPY420.86+5.94 1.43%
DIA338.78+5.82 1.75%
IXIC14,141.48+111.10 0.79%

Shapeways Lands SPAC Deal, Announces Desktop Metal Partnership

Seeking to grow with Industry 4.0, digital manufacturing company Shapeways is going public in a SPAC deal announced Wednesday morning. 

05/11/2021 14:44

Seeking to grow with Industry 4.0, digital manufacturing company Shapeways is going public in a SPAC deal announced Wednesday morning. 

The SPAC Deal: Shapeways, an end-to-end digital manufacturing company, announced a SPAC deal with Galileo Acquisition Corp (NYSE:GLEO).

The deal values Shapeways at an enterprise value of $410 million. Included in the PIPE for the deal is additive manufacturing company Desktop Metal Inc (NYSE:DM), which also went public via SPAC merger.

Current Galileo Acqusition shareholders will own 23% of the company if the merger is approved. 

About Shapeways: The system created by Shapeways increases production speed and lowers costs. Shapeways transforms printed items into physical products.

Shapeways has 11 technologies for 90 materials. Target industries include medical, industrial, automotive and aerospace. Shapeways uses flexible on-demand manufacturing with proprietary purpose-built software.

The company has delivered more than 21 million parts to one million customers in 160 countries. Customers listed in the presentation include Shopify Inc (NYSE:SHOP), Etsy (NASDAQ:ETSY), Amazon.com, Inc. (NASDAQ:AMZN), Walmart Inc (NYSE:WMT), Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) and eBay Inc (NASDAQ:EBAY).

Along with large customers, Shapeways works with several niche companies, creating items such as smart beehives to protect bees, off-road device mounts and a better brewing hydrometer.

Related Link: 10 SPACs Owned By Cathie Wood’s Ark Funds

Growth Ahead: The digital manufacturing market is expected to grow from $39 billion in 2020 to $120 billion by 2030 according to the company.

Shapeways seeks to make manufacturing accessible and frictionless for its customers. Currently, less than 6% of existing manufacturing companies have started the shift to digital manufacturing.

The company mentions Asia as an attractive area for expansion.

Shapeways signed a strategic partnership with Desktop Metal. The multi-year deal could be one to watch as it combines two companies in the digital manufacturing market that will be relatively new to the public markets.

Financials: In 2020, revenue for the company was split as 36% part production, 27% hardware, 22% other services and 15% materials. Fiscal 2020 revenue was $32 million.

The company reports that 88% of 2020 revenue came from existing customers and 12% from new customers.

Revenue estimates from the company are $44 million in fiscal 2021 and $86 million in fiscal 2022. The company estimates revenue of $400 million in fiscal 2025, representing less than 1% of the addressable market.

Related content: Benzinga's Full SPAC Calendar

GLEO Price Action: Shares of Galileo Acquisition are down 0.25% to $10.05 on Wednesday morning.

(Photo: Shapeways)