Shapeways, a leader in the large and fast-growing digital manufacturing industry, completed the previously announced business combination with Galileo Acquisition Corp., a special purpose acquisition company – SPAC. It is a very significant moment for both Shapeways and the “new AM industry” that is evolving from using AM for traditional prototyping and tooling to implementing (or at least targeting) digital additive mass production of final parts.
Founded as a spin-off of Royal Philips Electronics by a trio of Dutch entrepreneurs in Eindhoven (Peter Weijmarshausen, Robert Schouwenburg and Marleen Vogelaar) Shapeways immediately set out to do two things: bring AM to the masses and expand to the North American market (with a new facility in Long Island City, NY). Over the years (in 2017, former CEO and Co-founder Pete Weijmarshausen looked back at the first 10 years in this article) the company did have to face many challenges, including the fact that AM was still very far from becoming a technology for digital mass production.
Events proved the original founders (who have since left their management roles) right. New, faster technologies such as HP MJF and Carbon DLS entered the market and dramatically increased productivity (lowering costs) especially on certain types of consumer-targeted parts. Just last February, Shapeways reported it had already produced and shipped as many as 20 million parts by additive manufacturing.
Now a new phase of growth is starting as the combined company has been renamed Shapeways Holdings, Inc. and its common stock and public warrants are expected to begin trading on the NYSE on [September 30] under the new tickers “SHPW” and “SHPW.WS”, respectively. The business combination was unanimously approved by the Galileo Acquisition Corp board of directors and approved by a vote of Galileo shareholders.
Greg Kress, Chief Executive Officer, stated: “We are proud of what our team has achieved and excited to start our journey as a public company. Since we announced this transaction earlier this year, we have delivered strong year-over-year revenue growth and robust margins as we continue to scale and extend our footprint across key industries. With our best-in-class proprietary software, which digitizes the end-to-end manufacturing process, we believe Shapeways is uniquely positioned to capture a tremendous opportunity in the global manufacturing market. The opportunities ahead of us are exciting as we continue to scale across materials, markets, and technologies, and as we introduce our software-as-a-service (SaaS) offering. The completion of this transaction will provide us with the platform to execute on our growth strategy and drive shareholder value.”
Following the SPAC business combination and related PIPE investment, Shapeways will receive $103 million of gross proceeds, including a $75 million fully-committed common stock PIPE anchored by top-tier investors including Miller Value, XN, and Desktop Metal. The PIPE also includes investments from existing Shapeways investors Lux Capital, Union Square Ventures, INKEF Capital and Andreessen Horowitz. Proceeds will be used primarily to accelerate the Company’s additive manufacturing capabilities, accelerate the rollout of its SaaS offering, expand its material and technology offerings to extend market reach and grow customer share of wallet, as well as to provide additional working capital.
Shapeways’ existing management team, led by Chief Executive Officer Greg Kress, will continue to operate the business. Stay tuned for our upcoming interview with Shapeways Mr. Kress.