3-D Printing Company Fathom Nears $1.4 Billion SPAC Deal to Go Public

Fathom Digital Manufacturing Corp. is close to an settlement with a special-intent acquisition enterprise to go general public in a deal that values the 3-D printing company at about $1.4 billion, folks common with the matter said.

Dependent in Hartland, Wis., Fathom employs electronic production techniques to quickly make prototypes and elaborate production pieces for its buyers. Fathom suggests it allows blue-chip companies innovate and remedy operational troubles.

Fathom is close to a deal to incorporate with the SPAC Altimar Acquisition Corp. II, the people today said. The merger could be declared as quickly as Friday.

The business is just one of many trying to tap into a booming market place for 3-D printed products, with far more providers across industries trying to find to simplify supply chains, bring down expenditures and minimize their environmental footprints.

Owned by the personal-fairness organization Main Industrial Associates, Fathom would be part of many 3-D printing organizations going community by way of SPACs.

Desktop Metallic Inc.

went general public via a SPAC backed by the similar financial commitment firm—HPS Investment Companions LLC—that backs Altimar. Other firms in the room to not too long ago unveil so-called blank-check deals involve Velo3D Inc., Markforged and Shapeways.

Non-public businesses are flooding to specific-purpose acquisition companies, or SPACs, to bypass the conventional IPO system and get a public listing. WSJ points out why some critics say investing in these so-termed blank-look at companies isn’t really worth the hazard. Illustration: Zoë Soriano/WSJ

With traders fired up about the industry’s progress likely, numerous of these corporations are drawing lofty valuations and raising substantial sums by means of their SPAC promotions. Fathom would be envisioned to deliver about $425 million in income proceeds as a result of its merger from the $345 million held by the SPAC and a $80 million non-public expense in community fairness, or PIPE, the men and women mentioned.

Fathom has numerous production amenities across the U.S. and hopes to differentiate itself from early-phase businesses heading community by way of SPACs by touting its current enterprise, the persons reported. Fathom posted about $150 million in income in its 2020 fiscal year, they mentioned.

Also named a blank-verify organization, a SPAC is a shell agency that lists on a inventory trade with the sole objective of merging with an additional company to choose it community. SPAC deals have emerged as a preferred choice to a conventional initial community giving in the past 18 months, partly simply because they enable firms these as 3-D printing companies to make organization projections, which an IPO would not let.

SPAC executives say the promotions are accelerating progress for disruptive companies, even though skeptics contend that they disproportionately benefit insiders who are granted exceptional incentives.

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Altimar lifted $345 million in February and is a person of many SPACs backed by HPS. Just one of them took Desktop Metallic general public late past calendar year, when an additional combined with Owl Rock Money Associates LP and Dyal Cash Associates to make

Blue Owl Funds Inc.

SPACs have lifted a report of roughly $115 billion this 12 months, in accordance to data supplier SPAC Research. Issuance, nevertheless, has slowed in recent months, as shares of some common companies that merged with SPACs struggle and regulators boost their scrutiny of the sector.

Shares of Desktop Metal and the blank-examine companies taking other 3-D printing companies public have struggled in current months as have other publicly traded names in the place such as 3D Programs and

ExOne Co.

Produce to Amrith Ramkumar at [email protected]