VELO3D to Go Public

VELO3D, Inc. and JAWS Spitfire Acquisition Corporation, a special purpose acquisition company, have entered into a definitive business combination agreement. The transaction is anticipated to strengthen VELO3D’s position as a partner for companies seeking novel manufacturing solutions for complex design challenges, according to VELO3D. Upon completion of the transaction, which is expected to occur in the second half of 2021, the combined company will operate as VELO3D, and will be listed on the New York Stock Exchange (NYSE) under the new ticker symbol “VLD.”

VELO3D offers a full-stack 3D metal printing solution that enables the production of components for space rockets, jet engines, fuel delivery systems and energy production with performance and speed. With VELO3D’s technology, the company’s customers can create complex metal designs.

Since launching commercially in the fourth quarter of 2018, the company has serviced customers such as SpaceX, Honeywell, Boom Supersonic, Chromalloy and Lam Research.

VELO3D’s management team, including founder and CEO Benny Buller and CFO Bill McCombe, will continue to lead the company through its next phase of growth.

“VELO3D partners with the world’s most innovative companies leading the future of space travel, transportation and energy,” says Buller. “I am proud that such visionary partners continue to trust VELO3D to build products through methods that were previously impossible. With JAWS Spitfire’s long-term partnership, we expect to extend the reach of VELO3D’s technology and bring its solutions to even more customers globally. As we scale our business and advance our growth strategy, we expect to expand the high value metal additive manufacturing market and strengthen our competitive position.”

“Benny and the VELO3D team have placed technical innovation at the core of their business model, and we are excited to partner as they bring their technology to a broader set of similarly innovative customers across the world,” says Barry Sternlicht, co-founder and chairman of JAWS Spitfire. “Since commercialization, VELO3D has attracted an impressive customer base, showcasing the seamless, cost-competitive production of previously unattainable designs. VELO3D is well-positioned for robust growth in an established and expanding market.”

VELO3D’s financial model is asset light, backed by technology investments and positioned to scale to meet customer demand. The company’s growth strategy is to focus on the specific products that only it can produce within the $100+ billion total addressable market for high value metal parts. The additional capital provided from this transaction will allow VELO3D to make investments in engineering, product development, sales, marketing and customer support.

VELO3D is ready to deploy its new laser printing technology solution, Sapphire XC, which is expected to ship in the fourth quarter of 2021. Sapphire XC is designed as a scale-up of VELO3D’s Sapphire solution, and will support the production of parts that are up to five times higher volume and up to three times lower cost than existing Sapphire technology.

The transaction values the combined company at an enterprise value of approximately $1.6 billion, at the $10-per-share PIPE subscription price and assuming no public shareholders of JAWS Spitfire exercise their redemption rights. The company will receive up to $345 million in proceeds from JAWS Spitfire’s cash in trust and a $155 million private placement of common stock at a $10-per-share value. The private placement is led by strategic and institutional investors, including Baron Capital Group and Hedosophia. Upon completion of the transaction, VELO3D is set to benefit from a flexible capital structure with approximately $470 million of cash on the company’s balance sheet, net of debt and assuming no redemptions are affected.

Assuming no public shareholders of JAWS Spitfire exercise their redemption rights, VELO3D’s existing shareholders will own approximately 72%, JAWS Spitfire’s existing shareholders and sponsor will own approximately 21% and PIPE investors will own approximately 7% of the issued and outstanding shares of common stock, respectively, of the combined company at closing.

The transaction, which has been unanimously approved by the boards of directors for VELO3D and JAWS Spitfire, is subject to approval by JAWS Spitfire’s shareholders and other customary closing conditions.

A more detailed description of the transaction terms and a copy of the Business Combination Agreement and investor presentation will be included in a current report on Form 8-K to be filed by JAWS Spitfire with the U.S. Securities and Exchange Commission (the “SEC”). A presentation made by the management of VELO3D and JAWS Spitfire regarding the transaction will also be available on VELO3D’s website. 

Sources: Press materials received from the company and additional information gleaned from the company’s website.