Fast Radius, Inc., a cloud manufacturing and digital supply chain company, and ECP Environmental Growth Opportunities Corp. (NASDAQ: ENNV) have reached a definitive agreement that will make Fast Radius a publicly traded company on the NASDAQ index.
The combined company will have an estimated post-transaction enterprise value of $ 995 million with an estimated net worth of $ 1.4 billion from the contribution of $ 445 million in gross cash proceeds from the transaction. The proceeds will consist of up to $ 345 million of cash held in ENNV’s trust account (assuming there are no redemptions) and an additional private investment of $ 100 million. fully committed (the “PIPE”), including a $ 25 million forward purchase commitment from Goldman Sachs Asset Management, LP Other investors in PIPE include UPS, Palantir, ECP and other institutional investors.
Lou Rassey, Co-Founder and CEO of Fast Radius, commented, “We are building a one-of-a-kind cloud manufacturing platform that provides new infrastructure to design, manufacture and move physical objects in the digital age. As the platform grows, we believe cloud manufacturing will have as big an impact on innovation in the physical world as cloud computing has had in the digital world. The benefits of software and hardware that power manufacturing in the cloud are tangible and significant: the cloud improves the speed, flexibility, cost and accessibility of Industry 4.0, while providing a more sustainable model for chains. global supply. “
Fast Radius is a dynamic software and industrial technology company that has pioneered and continues to develop a proprietary digital supply chain and cloud manufacturing infrastructure. The Fast Radius solution combines proprietary software with a network of distributed company-owned micro-factories and third-party vendors. This enables engineers to design, produce and fabricate custom parts in a range of manufacturing technologies, including additive manufacturing, CNC machining, and injection molding.
The Fast Radius cloud manufacturing platform has served more than 2,000 customers, including Fortune 500 companies in the automotive, aerospace, medical, industrial and consumer industries. The platform is uniquely designed to deliver industrial certified parts at production volumes (eg thousands of units, not just prototypes) and has manufactured over 11 million custom parts to date.
Cloud Manufacturing Platform is analogous to cloud computing and ushers in a new era of innovation in the physical world, just as cloud computing has done in the digital world. Its infrastructure is a network of distributed Fast Radius micro-factories and an organized set of third-party vendors, in addition to a proprietary software layer to orchestrate the infrastructure. The operating system is a modern, software-driven user experience for customers and internal operations, including information based on machine learning.
Applications and Services: A scalable ecosystem of applications and services, giving anyone with a browser access to industry-leading manufacturing knowledge, tools, and elastic capacity. Services running on the platform today include Fast Radius On-Demand, Fast Radius Virtual Warehouse, and Fast Radius Additive Launch.
This platform represents a new, more sustainable infrastructure for designing, manufacturing and moving physical goods in the digital age. Fast Radius adapts its vision to unleash the “fourth modality of logistics”. Instead of storing parts physically, businesses will have the option of storing parts digitally in the Fast Radius Virtual Warehouse ™. Instead of moving parts by land, air and sea, companies can move parts at the speed of light and produce them locally in a certified micro-factory if needed. The Cloud Manufacturing Platform ™ creates a more sustainable, accessible and flexible global supply chain paradigm to meet the needs of this century.
UPS has partnered with Fast Radius to support the expansion of its digital manufacturing and supply chain infrastructure. Fast Radius has established one of its micro-factories onsite at the UPS facility at Worldport in Louisville, KY.
An attractive investment
Fast Radius plans to build the world’s first over $ 100 billion cloud manufacturing and digital supply chain company, presenting a compelling investment opportunity in Industry 4.0 and next-generation sustainable infrastructure.
The more than $ 350 billion component manufacturing industry, including additive manufacturing, CNC machining and injection molding production, continues to grow and develop. Massive tailwinds are pushing to replace rigid, obsolete and fragmented infrastructure. Global demand is increasing for more agile and sustainable supply chains, modern consumer experiences in industry and a real impact of Industry 4.0 innovations, including new tools for digital design, simulation, digital factory equipment and infrastructure.
Today’s fragmented, small-scale vendor landscape struggles to meet these needs, and Fast Radius is capitalizing on the opportunity to become a leader in the space. The Fast Radius platform is redefining the way products are made and moved, creating a new flexible, sustainable and accessible infrastructure, offering customers a new way to design, manufacture and deliver products on a global scale.
Fast Radius is trusted and certified by Fortune 500 customers across industries, having produced over 11 million parts and served over 2,000 customers in additive manufacturing, CNC machining, injection molding and many other manufacturing technologies, which generated a CAGR of about 96% over the past 4 years.
The World Economic Forum has recognized Fast Radius as one of the nine most advanced factories in the world. Fortune 500 customers have also recognized Fast Radius as a trusted parts supplier in all manufacturing technologies, including production-grade additive manufacturing, where in many cases Fast Radius is the first and only supplier of production additives.
Fast Radius’ proprietary micro-factories – a “factory in a box” model – are designed to be replicated for hyper-growth, supported by proprietary software, generating attractive returns on invested capital. In addition, the platform of applications and services provides a drive for growth as seen in cloud computing.
Team uniquely equipped to perform.
The Fast Radius management team includes experienced and visionary executives with a proven track record in high growth technology companies. Doug Kimmelman, President of ENNV, said, “The Fast Radius Cloud Manufacturing Platform ™ offers a fundamentally more sustainable way to produce and manufacture parts around the world. We look forward to partnering with Lou and his team to accelerate growth as they execute their proven business model and capitalize on significant opportunities in the growing custom parts manufacturing market. As a public company, we believe that Fast Radius will be even better positioned to maintain its leadership in the software and industrial technologies sector. “
Rassey added, “We are delighted to partner with ENNV, as their team’s long track record of success, their history of being at the forefront of new sustainable infrastructure transitions and their institutional reach will accelerate the next chapter. of our growth. Our board of directors and management team remain committed to implementing our proven business model and creating value for all stakeholders. “
Public growth strategy
The net proceeds of the transaction will be used to support the continued growth of Fast Radius through customer acquisition, software development and micro-factory expansion. Fast Radius’ growth strategy is expected to generate revenues and EBITDA of $ 635 million and $ 135 million, respectively, in 2025.
The current management of Fast Radius, employees and existing shareholders will inject 100% of their existing holdings into the equity of the combined company. The business combination was unanimously approved by the boards of directors of Fast Radius and ENNV. The business combination is expected to be finalized in the fourth quarter of 2021, subject to regulatory and shareholder approvals, and other customary closing conditions.
Upon closing of the transaction, ENNV will be renamed “Fast Radius, Inc.” and is expected to remain listed on NASDAQ.