Metal 3D Printing Company Velo3D to go public through SPAC merger

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Velo3D and JAWS Spitfire Acquisition Corporation, a SPAC (special purpose acquisition company) have announced their decision to merge and this would list Velo3D is a publicly-traded company on the New York Stock Exchange (NYSE) with the ticker VLE. Velo and JAWS expect the transaction to close in the second half of 2021. Velo is expected to receive $500 million in cash and private investment, through the merger, and the deal will value the company at $1.6 billion following shareholder approval.

In its investor presentation, additive metal component printing systems provider, Velo3D, has raised awareness about its finances and products, which have helped companies solve supply chain as well as design and manufacturing problems.

Velo3D’s list of customers includes Elon Musk’s Space Exploration Technologies Corp. (SpaceX), Aerojet Rocketdyne, and Lockheed Martin. It provides 3D printing systems to a host of such companies spanning the energy, defence aerospace, space, chip design, and other industries.

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Velo’s only strategic investor in the 3D systems manufacturer’s investor presentation for its acquisition announcement was SpaceX.

A microturbine with its internal structures visible through a cross-section manufactured by Velo’s SupportFree technology. Image: Velo3D

The California-based company’s unique products have the capability of manufacturing components with complex internal geometries which require internal support systems. As the supports are often manufactured as part of the component, these systems introduce design constraints that end up affecting its overall performance when the movement of fluids and gasses through it takes place. According to the Verge, “Velo’s SupportFree additive manufacturing system removes the need for these supports and its software adapts the manufacturing process to specific sub-component geometries of a component.”

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Velo, which sells software, manufacturing systems, and technologies, stated that its systems qualification tests for Honeywell Aerospace’s engine parts will be completed in its investor webcast in the second quarter of this year. For another unnamed jet engine manufacturer, it has also enabled the consolidation of more than 100 parts into a single part.

Velo3D’s financial projections estimate $937 million in revenue for 2026, with orders for 2022 already being booked or pre-ordered. Image: Velo3D Investor Presentation

Its SupportFree technology has a TAM of $20 billion (Total Addressable Market) and, according to Velo’s unaudited financial data, in 2020 this segment commanded a 34% global market share for additive manufacturing.

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The company has high expectations of revenue growth, it expects to earn $26 million this year and $162 million in 2023, and close to a billion in 2026. “Velo’s current operations require little capital expenditures as the bulk of its production is carried out by manufacturing partners with the company primarily responsible for quality control and final assembly.”

Sapphire XC 3D printer is also on the verge to launch in the markets, this printer from Velo allows companies to manufacture larger and a wider variety of components than its predecessor could.

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