(Bloomberg) -- Desktop Metal Inc., a 3D printing equipment manufacturer, has agreed to acquire rival EnvisionTEC, according to people familiar with the matter.
The transaction, consisting of cash and newly issued stocks, will value EnvisionTEC at $300 million, said the people, who asked not to be identified because the information wasn’t public. The deal is expected to close in the first quarter and is subject to closing conditions.
EnvisionTEC’s founder, Al Siblani, will remain as chief executive officer of the business upon completion of the deal, the people said.
Based in Burlington, Massachusetts, Desktop Metal, which uses 3D printing for mass manufacturing, went public through a merger last year with a special purpose acquisition company, or SPAC. Its shares have risen 24% since the deal was completed in December.
Desktop Metal focuses on heavy machinery and materials such as metal and carbon fiber. EnvisionTEC, founded in 2002, manufactures 3D printers that are used for more delicate products including medical devices and jewelry, as well as in the automotive and aerospace industries.
EnvisionTEC has more than 5,000 customers, including luxury jeweler Cartier, automaker Ford Motor Co. and online dental products company SmileDirectClub Inc.