Desktop Metal To Acquire ExOne For $575M

Desktop Metal Inc DM has agreed to acquire all of the issued and outstanding shares of ExOne Co XONE for $575 million, consisting of $192 million in cash and $383 million in share consideration.
The total consideration of $25.50 per share represents a 47.6% premium to ExOne's August 11, 2021, closing price of $17.28.
ExOne shareholders will receive $8.50 in cash and $17.00 in shares of Desktop Metal for each share of ExOne.
The transaction value also implies an acquisition multiple of 6.4x 2021 consensus revenue estimates for ExOne.
The final number of Desktop Metal shares estimated to be issued will be ~39.5 million - 48.3 million at closing.
On completion, current Desktop Metal shareholders will own 85%- 88%, and current ExOne shareholders will hold 12%-15% of the combined company.
The transaction is expected to close in Q4 of 2021.
Kent Rockwell, ExOne's Chairman and shareholder, has entered into a Support Agreement to vote his 4.2 million shares in favor of the transaction.
Price Action: XONE shares are trading higher by 38.89% at $24.00, and DM lower by 1.46% at $8.80 during the premarket session on Thursday.