Houston-based Volumetric Inc., a startup specializing in 3D bioprinting of replacement organs and tissue, is being acquired by South Carolina-based 3D Systems Corp. (NYSE: DDD).
The transaction, which consists of approximately half stock and half cash payments, is valued at $400 million if all milestones are accomplished. The deal is expected to close in the fourth quarter.
3D Systems, a provider of products and services serving the 3D printing space, will pay a closing payment of $45 million to acquire Volumetric. An additional $355 million opportunity will be linked to attaining "significant steps in the demonstration of human applications over the next several years," 3D Systems said.
Volumetric was spun out of Rice University by co-founders Jordan Miller and Bagrat Grigoryan. Miller, who is also currently an associate professor of bioengineering at Rice, is joining 3D Systems as chief scientist for regenerative medicine to lead the firm's efforts in manufacturing human lungs and other organs. Grigoryan will join as vice president of regenerative medicine at 3D Systems.
"We are so excited to join 3D Systems and its joint development program with United Therapeutics Corporation, working together to deliver on the promise of regenerative medicine," said Miller. "We will build out our R&D pipeline right here in Houston, next to the dozens of other innovative life sciences companies we have been working with, and alongside, for the past three years."
3D Systems and United Therapeutics (Nasdaq: UTHR) will continue efforts to manufacture and commercialize regenerative medicine and bioprinting tissue from Volumetric's 20,000-square-foot facility in the East End Maker Hub, an industrial makerspace that opened this year in Houston's East End. Volumetric was one of the first tenants to lease space at the East End Maker Hub last year when it signed on for 11,000 square feet of space. The startup later expanded its footprint in the EEMH to 20,000 square feet.
"Manufacturing human organs represents a transformative opportunity to reduce serious organ disease states worldwide," said Grigoryan. "Broadening our team’s ability to deliver on the promise of organ therapy is a win for patients and medical care around the world, as well as Volumetric shareholders who believed in our promise from early phase development."
Volumetric was represented in the transaction by pH Partners LLC as financial adviser and Shearman & Sterling LLP as legal adviser.
3D Systems provides a range of products and services to the additive manufacturing industry, including 3D printers, print materials, software, on-demand manufacturing services and health care manufacturing. The company is headquartered in Rock Hill, South Carolina, in the Charlotte, North Carolina, metro region.
"Volumetric is already successful in its space with innovative light-based bioprinting," said Jeffrey Graves, president and CEO of 3D Systems. "This acquisition and integration of Volumetric into the 3D Systems family advances our commitment to health care."
