ADDiTEC’s acquisition has brought Xerox’s Metal 3D Printing back to life.

Share this story

Resurgent M&A Activity in the Additive Manufacturing Sector

The recent announcement by Xerox Holdings Corporation regarding the sale of its metal additive manufacturing (AM) subsidiary, Elem Additive Solutions, to ADDiTEC, marks a significant milestone in the resurgent M&A activity in the AM sector. The financial details of the transaction were undisclosed.

Xerox had previously announced its decision to scale back Elem Additive, leading to the halt of its new activities and subsequent layoffs. However, Xerox confirmed that it would continue to support the existing installations of the ElemX liquid metal printer with maintenance services, leveraging one of Xerox’s greatest strengths.

Xerox had acquired the ElemX technology, which formed the foundation of the Elem Additive venture, through its acquisition of metal 3D printing startup Vader Systems in 2019. Despite its relatively short-lived existence, Elem Additive proved to be ahead of its time. In February 2021, the company announced a strategic partnership collaboration with the Naval Postgraduate School, which culminated in July 2022 with the successful printing of a metal part on the USS Essex, an at-sea naval vessel. This achievement prompted the US Navy to accelerate its use of 3D printing on actively deployed vessels, including the first permanent installation of a metal printer on the USS Bataan in November 2022.

Notably, Meltio, a Spanish 3D printing OEM that commercialized technology originally developed by ADDiTEC, was involved in the manufacturing of the Phillips Additive Hybrid platform used on the USS Bataan. ADDiTEC has been actively developing deployable platforms over the past year, indicating its commitment to scaling up. The success of ElemX in this regard could be a key factor contributing to ADDiTEC’s scale-up goals.

In addition to deployability, both ADDiTEC platforms and ElemX utilize metal wire feedstock to create liquid melt pools. This commonality makes ADDiTEC an ideal buyer for Elem Additive Solutions, enhancing its capability to leverage the unique value of the ElemX platform.

Steve Bandrowczak, CEO of Xerox, expressed confidence in ADDiTEC as the right partner for the sale, stating, “It was critical we found a company with a shared mission that would sustain and advance Elem Additive’s innovation into the future.” Brian Matthews, Founder and CEO of ADDiTEC, also shared his excitement about the acquisition, emphasizing the value of Liquid Metal print technology and Elem Additive’s success in supporting ADDiTEC’s growth efforts.

The acquisition positions ADDiTEC to serve a prestigious customer base, including the US Navy, Siemens, and Oak Ridge National Laboratory (ORNL). Furthermore, ADDiTEC’s strategic location on the Florida coast offers access to a range of potential clients in the government-driven R&D space. With the recent announcement by ASTRO America for an AM Forward-centric small business investment fund (SBIF), which has a strong Florida presence, ADDiTEC’s acquisition of Elem Additive Solutions could have significant long-term benefits.

In conclusion, the sale of Elem Additive Solutions to ADDiTEC represents a mutually beneficial move for both companies. Xerox has found a buyer capable of maximizing the unique value proposition of the ElemX platform, while ADDiTEC gains access to prestigious clients and a geographic advantage in the AM industry. This transaction aligns with the overall resurgence of M&A activity in the AM sector and highlights the potential for future growth and innovation. Stay updated on the latest news in the 3D printing industry and receive valuable information and offers from third-party vendors by subscribing to our newsletter.

Original source

Share this story

Leave a Reply

Your email address will not be published. Required fields are marked *