Markforged expands into mass production of end-use metal parts through digital metal acquisition

Markforged software capabilities and global coverage to accelerate adoption of Digital Metal’s reliable, production-grade binder jetting solution

WATERTOWN, Mass., July 12, 2022–(BUSINESS WIRE)–Markforged (NYSE: MKFG), creator of integrated metal and carbon fiber additive manufacturing platform, The Digital Forge, today announced that it has entered into a definitive agreement with Höganäs AB to acquire Digital Metal, the creator of a binder jetting solution known for its accuracy and reliability, extending Markforged’s capabilities to high throughput production of metal additive parts.

The addition of Digital Metal reinforces Markforged’s strategy to solve manufacturing problems for industrial customers where they are needed. With this new offering, manufacturers have the ability to produce large volumes of functional metal parts with minimal setup required. Traditional production often takes months to transition from design to manufacturing, introduces third-party vendor risk, and offers poor unit economics during ramp-up and in lower volumes.

Markforged sees powder binder jetting as a highly scalable additive manufacturing technology for production-grade parts using a variety of metallic materials. Digital Metal’s solution is designed to deliver parts of unmatched high precision, quality and reliability. Powder Binder Jetting complements Digital Forge’s existing offering and will expand Markforged’s market potential by solving new customer challenges.

“With the acquisition of Digital Metal, Markforged is advancing our vision of distributed manufacturing by enabling the reliable, high-volume production of precise metal parts at the point of need. The integration of Digital Metal’s solution into the platform Digital Forge allows us to address new applications in the medical, automotive, luxury goods and other industries,” said Shai Terem, President and CEO of Markforged. “The Digital Metal team has created a robust and scalable solution that complements our existing technologies. I look forward to welcoming their talents to Markforged.”

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Founded in 2003, Digital Metal is a wholly owned subsidiary of Höganäs AB and the creator of proprietary AM binder jetting technology. Known for their high productivity, excellent surface quality and superior resolution, Digital Metal Printers have been used to produce hundreds of thousands of parts, including parts for consumer product leaders, universities and industry automobile. Markforged sees significant opportunities to further accelerate the adoption of Digital Metal through integrated software capabilities and a global go-to-market engine.

“Markforged’s easy-to-use platform, best-in-class software capabilities and hardware expertise seemed like a natural fit for the future of our technology,” said Christian Lönne, CEO of Digital Metal. “With Markforged’s experience and scale to market, we are confident that we will be able to grow our technology together and help more manufacturers produce the high-volume metal parts they need. needed to conduct highly productive and profitable operations.”

As part of the transaction, Markforged will pay Höganäs approximately $32 million in cash, approximately 4.1 million shares of Markforged common stock and approximately $1.5 million in cash to settle certain intercompany balances, subject to certain adjustments. The acquisition of Digital Metal is expected to close during the third quarter of 2022, subject to customary conditions.

About Digital Metal

Digital Metal’s proprietary binder jetting technology enables the production of highly complex objects with superior surface finish and repeatable precision not possible with competing technologies. In addition to the development, manufacture and sale of printers, Digital Metal also offers small and large volume printing services. Many of the world’s largest companies in aerospace, automotive, industrial, medical technology, energy, luxury and education are among its clients.

Digital Metal® was founded in 2003 and is based in southern Sweden. The company is part of the Höganäs Group (founded in 1797), one of the leading producers of metal powders. Learn more at www.digitalmetal.tech or www.linkedin.com/company/digital-metal.

About Markforged

Markforged (NYSE: MKFG) is reinventing the way humans build while leading a technological transformation of manufacturing with solutions for businesses and societies around the world. Markforged Digital Forge brings the power and speed of agile software development to industrial manufacturing, combining hardware, software and materials to solve supply chain problems at the point of need. Engineers, designers, and manufacturing professionals around the world rely on Markforged metal and composite printers for high-value tooling, fixtures, functional prototyping, and end-use production. Markforged is headquartered in Watertown, Massachusetts, where it designs its products with more than 400 employees worldwide. To learn more, visit www.markforged.com.

Special note regarding forward-looking statements

This press release contains forward-looking statements based on beliefs and assumptions and information currently available. In some instances, you can identify forward-looking statements by the following words: “may”, “will”, “could”, “would”, “should”, “expect”, “intend”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, “continues”, “ongoing” or the negative form of these terms or other comparable terms , although not all forward-looking statements contain these words .Such statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially. information expressed or implied by such forward-looking statements.Although Markforged believes it has a reasonable basis for each forward-looking statement contained in this press release, Markforged cautions you that such statements are based on a combination of facts and factors currently known to he the and her projections for the future, about which she cannot be certain. Forward-looking statements contained in this press release include, but are not limited to, the anticipated synergies of the combined companies, the timing of the closing of the proposed transaction, the successful and/or timely integration of the Digital Metal business with Markforged’s products and the potential benefits customers can derive from this integration; and Markforged’s and Digital Metal’s future product and strategy plans. Markforged cannot assure you that the forward-looking statements contained in this press release will prove to be accurate. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, including, without limitation, risks associated with: the ability of Markforged and Höganäs to satisfy the conditions to the closing the transaction in a timely manner or not at all; the occurrence of events which may give rise to a right of either or both Markforged and Höganäs to terminate the purchase agreement; Markforged’s failure to file a registration statement to record the resale of the Share Consideration, when issued; the possibility that the anticipated synergies from this transaction will not be realized in a timely manner or at all; the general economy, the impact of COVID-19 on the countries or regions in which we operate or do business; political and business conditions and other risks identified under “Risk Factors” in Markforged’s most recent periodic and other filings with the SEC, and in all subsequent filings by Markforged with the SEC. Also, if the forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the material uncertainties in these forward-looking statements, you should not consider these statements to be a representation or warranty by us or anyone else that Markforged will achieve its goals and plans within a specified time frame, or at all. The forward-looking statements contained in this press release represent Markforged’s views as of the date of this press release. Markforged anticipates that subsequent events and developments will cause its views to change. However, although Markforged may choose to update these forward-looking statements at some point in the future, Markforged currently has no intention of doing so, except as required by applicable law. You should therefore not rely on these forward-looking statements as representing the views of Markforged as of any date subsequent to the date of this press release.

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