Essentium Inc. is in talks with Atlantic Coastal Acquisition Corp. for an IPO. According to sources knowing the matter, the industrial 3D printing solutions provider is looking at the merger route with the blank check firm, Atlantic Coastal as per Bloomberg news.
The merger transaction is set to value the combined entity to $ 900 million, according to sources who declined to be identified as the developments on talks are not public yet. Atlantic Coastal Acquisition Corp. is on the threshold of raising additional funds through PIPE or private investment in public equity. The shares are priced at $ 10, according to sources. The deal is still not finalized, and the terms of conditions can change. If the deal is agreed upon, then in the coming weeks, an announcement could be made.
Requests for comments did not elicit any response from Pflugerville, Texas-based Essentium representatives. The New York-based Atlantic Coastal representative also declined to comment on the developments.
Capital providers to the middle market, Genesis Park, and BASF Venture Capital, belonging to the BASF Group, are some of the investors in Essentium. The company is headed by CEO Blake Teipel and is known for its ability to disrupt the traditional manufacturing process with its additive manufacturing initiatives.
Jonathan Baliff, the CFO and President of Genesis Park Acquisition Corp, a special purpose acquisition company (SPAC) that got merged with RedwireCorp, is now appointed as the interim CFO of Essentium this month.
Atlantic Coastal, led by Shaharaab Ahmad, CEO, and Burt Jordan, President, had raised $ 345 million in March this year’s IPO.
Companies like Markforged Holding Corp., Desktop Metal Inc., Velo3D Inc., and Desktop Metal Inc. specializes in 3D printing and made their IPO debuts after merging with SPACs.
