Velo3D to become public company valued at $1.6 billion

March 23, 2021

Velo3D’s current management team, including CEO Benny Buller (pictured), will continue on with the company through the combination (Courtesy Velo3D)

Velo3D, Inc, Campbell, California, USA, and the JAWS Spitfire Acquisition Corporation, a special purpose acquisition company, have entered into a definitive business combination agreement. Upon completion of the transaction, expected in the second half of 2021, the combined company will operate as Velo3D, listed on the New York Stock Exchange under the new ticker symbol VLD.

The transaction values the combined company at an enterprise value of approximately $1.6 billion, 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 $345 million in proceeds from JAWS Spitfire’s cash in trust and a $155 million private placement of common stock at a $10.00 per share value. The private placement will be led by strategic and institutional investors, including Baron Capital Group and Hedosophia.

Upon completion of the transaction, Velo3D is set to benefit from a flexible capital structure with approximately $470 million of cash on the company’s balance sheet, net of debt and assuming no redemptions are effected.

Velo3D’s current management team, including founder and CEO Benny Buller and CFO Bill McCombe, will continue to lead the company through this next stage.

“Velo3D partners with the world’s most innovative companies leading the future of space travel, transportation and energy,” stated Buller. “I am proud that such visionary partners continue to trust Velo3D to build products through methods that were previously impossible. 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.”

Velo3D’s financial model is asset light, backed by significant investments and positioned to rapidly scale to meet demand. The company’s growth strategy is to focus on specific products that are tailored to its abilities within the $100+ billion total addressable market for high-value metal parts. The additional capital provided from this transaction will allow Velo3D to make substantial investments in engineering, product development, sales, marketing and customer support.

“Benny and the Velo3D team have placed technical innovation at the core of their business model, and we are excited to partner as they bring their technology to a broader set of similarly innovative customers across the world,” added Barry Sternlicht, co-founder and chairman of JAWS Spitfire. “Since commercialisation, Velo3D has 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.”

Sapphire integrates with Velo3D Flow pre-print software and Assure quality assurance and control systems (Courtesy Velo3D)

Velo3D is ready to release its newest Laser Beam Powder Bed Fusion (PBF-LB) offering, Sapphire XC, expected to ship in the fourth quarter of 2021. Sapphire XC is designed as a scale-up of the previous Sapphire machine and will support the production of parts that are up to five times higher volume and three times lower cost than existing Sapphire technology.

Assuming no public shareholders of JAWS Spitfire exercise their redemption rights, Velo3D’s existing shareholders will own approximately 72%, JAWS Spitfire’s existing shareholders and sponsor will own approximately 21% and PIPE investors will own approximately 7% of the issued and outstanding shares of common stock, respectively, of the combined company at closing.

The transaction was unanimously approved by the boards of directors of both companies, though is still subject to approval by JAWS Spitfire’s shareholders and other customary closing conditions.

www.velo3d.com

In the latest issue of Metal AM magazine

Download PDF
 

Extensive AM industry news coverage, as well as the following exclusive deep-dive articles:

  • The GRCop story: The development, production and Additive Manufacturing of NASA’s rocket engine alloys
  • Formnext 2023: Innovations in metal Additive Manufacturing from the industry’s leading international exhibition
  • Cybersecurity in Additive Manufacturing: Securing the industry’s future
  • Additive Manufacturing in the jewellery industry: exploring the potential of platinum and titanium
  • Mission possible: The five-year plan to gain FAA and EASA acceptance of in-process monitoring

The world of metal AM to your inbox

Don't miss any new issue of Metal AM magazine, and get the latest industry news. Sign up to our twice weekly newsletter.

Sign up

Discover our magazine archive…

The free to access Metal Additive Manufacturing magazine archive offers unparalleled insight into the world of metal Additive Manufacturing from a commercial and technological perspective through:

  • Reports on visits to leading metal AM part manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.

Browse the archive

Looking for AM machines, metal powders or part manufacturing services?

Discover suppliers of these and more in our comprehensive advertisers’ index and buyer’s guide, available in the back of Metal AM magazine.

  • AM machines
  • Process monitoring & calibration
  • Heat treatment & sintering
  • HIP systems & services
  • Pre- & post-processing technology
  • Powders, powder production and analysis
  • Part manufacturers
  • Consulting, training & market data
View online
Share via
Copy link
Powered by Social Snap