Shapeways nears deal to go public through Galileo SPAC merger -sources
Apr 27, 2021
NEW YORK, April 27 (Reuters) – 3D-printing technology provider Shapeways Inc is nearing a deal to go public through a merger with blank-check acquisition firm Galileo Acquisition Corp (GLEO.N) at a valuation of $410 million, including debt, according to people familiar with the matter.
Shapeways would be the latest 3D printing company to agree to a deal to go public through a merger with a special purpose acquisition company (SPAC), following the likes of Desktop Metal Inc (DM.N), Markforged and Velo3D.
The global 3D printing market is seen growing to $34.8 billion by 2024 from $9.9 billion in 2018, according to a 2019 report by MarketsandMarkets.
Shapeways helps engineers turn digital designs into physical products. The company says it produced more than 20 million parts for over 1 million customers worldwide, mostly through polymers.
New York-based Shapeways was spun out of Royal Philips Electronics’ lifestyle incubator. Its investors include venture capital firms Andreesen Horowitz, Lux Capital and Union Square Ventures, as well as Hewlett Packard Enterprise Co (HPE.N).
SPACs are shell companies that raise funds in an initial public offering with the aim of merging with a private company, which becomes public as result. In the past year, they have become a popular alternative to a traditional IPO. read more
However, SPAC dealmaking tailed off in recent weeks following a record start to 2021 after U.S. regulators changed the accounting requirements for them.
Galileo raised $138 million in an October IPO on the New York Stock Exchange.
Reporting by Joshua Franklin in New York Editing by Matthew Lewis