11-05-2023: Nexa3D announced its intent to acquire Essentium
Transaction was formally completed in January of this year
On November 5, 2023, Nexa3D announced it had signed a letter of intent to acquire Essentium, a manufacturer of 3D printers utilizing high-speed FFF technology (HSE – High Speed Extrusion). The acquisition was finalized at the beginning of 2024.
Essentium established a strong presence in the 3D printing market, initially through the development and supply of specialized thermoplastic materials (filaments) for FDM / FFF technology, and later by launching its proprietary High Speed Extrusion (HSE) series of 3D printers. The first in this lineup was the HSE 180 3D printer, followed by additional models—the HSE 280i HT and HSE 240 HT—equipped with dual print heads. The company also introduced high-performance filaments such as PEKK and PPS-CF.
Essentium’s 3D printers and filaments are used in sectors such as defense, drone manufacturing, and orthotics and prosthetics production. The company also collaborates directly with the United States Air Force. Nexa3D, on the other hand, initially specialized in ultra-fast, industrial 3D printers for light-curing resins, gradually expanding its portfolio to include powder-based technologies through the acquisition of NXT Factory and the SLS 3D printing division from XYZ Printing.
On the financial side, Essentium faced significant challenges after an unsuccessful attempt to go public in 2021. Originally, the company had sought funding through a merger with Atlantic Coastal Acquisition Corp. in a SPAC deal, but the merger was canceled in February 2022, resulting in a missed opportunity for growth capital. This setback placed Essentium in a difficult financial position, straining operations and limiting its ability to expand or invest in new technologies as originally planned.
Without the expected public investment, the company struggled to keep pace in the rapidly evolving additive manufacturing market.
Thus, the merger with Nexa3D had a dual purpose—developmental, but also somewhat of a rescue effort. The coming months should reveal just how beneficial this transaction proves to be for both companies.
Source: www.nexa3d.com