Fast Radius: Key Takeaways On The SPAC Deal Backed By Goldman Sachs, Palantir

A disruptive cloud manufacturing and supply chain company announced plans to go public Monday. 

The SPAC Deal: Fast Radius announced a SPAC merger with ECP Environmental Growth Opportunities Corp ENNV. The deal values the company at a post-transaction equity value of $1.4 billion.

A $100 million PIPE includes investments by Goldman Sachs Group Inc GS, United Parcel Service Inc UPS and Palantir Technologies Inc PLTR.

Public ENNV shareholders will own 24% of the company after the merger. The company will trade as Fast Radius on the Nasdaq with a ticker to be named after the merger is completed.

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About Fast Radius: Seeking to lead the way as the first cloud manufacturing digital supply chain company, Fast Radius operates in the Industry 4.0 market.

The company designs and makes physical products for customers using proprietary software.

Fast Radius operates a cloud manufacturing platform designed to create an ecosystem of software applications and manufacturing services.

Fast Radius has worked with more than 2,000 customers including 45 Fortune 500 companies. Target sectors include automotive, aerospace, medical, consumer, industrial, medical and technology. The company has made more than 11 million parts lifetime-to-date.

Customers listed in the company’s presentation include Aptiv PLC APTV, Toyota Motor Corp TM, Rawlings, Cobalt, Collins Aerospace and Airbus subsidiary, Satair. Case studies in the presentation include Satair and a partnership with Aptiv and Ford Motor Company F.

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Growth Ahead: Fast Radius lists a current total addressable market size of $350 billion. The company plans on disrupting the outdated manufacturing process that includes lengthy delivery times and large amounts of physical inventory.

“We believe cloud manufacturing will have as great an impact on driving innovation in the physical world and cloud computing has had in the digital world,” Fast Radius CEO and co-founder Lou Rassey said.

Fast Radius has four microfactories and plans on building out these proprietary factories to help with production. In 2018, the company’s microfactory was named one of the nine most advanced factories in the world.

One microfactory is located on the UPS Worldport hub in Louisville, Kentucky, giving Fast Radius a close working relationship with UPS.

Financials: Fast Radius estimates fiscal 2021 revenue of $25 million. The company sees revenue growing to $103 million in fiscal 2022 and $246 million in fiscal 2023.

Fast Radius sees revenue growing at a compounded annual growth rate of 100% from fiscal 2020 to fiscal 2025 hitting more than $600 million in 2025. The company sees profitability in fiscal 2025.

ENNV Price Action: ENNV shares are up 0.62% to $9.80 on Monday. 

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