In a $300 million deal, manufacturing marketplace Xometry acquired Thomasnet.com, a B2B portal whose more than 1.3 million registered users include Grainger, General Electric Co., and other big names. Xometry says the combined company has revenue of more than $250 million.

Since launching in 2013, Xometry Inc. has managed steady growth as an online marketplace where more than 40,000 buyers from companies like automaker BMW and pharmaceutical manufacturer Moderna purchase manufacturing services from an international network of more than 5,000 manufacturers and machine shops.

Xometry and Thomas share a common mission of championing the digital transformation of the manufacturing industry.
Randy Altschuler, CEO
Xometry Inc.

In Xometry’s most recent quarterly financial statement, for the third quarter ended Sept. 30, revenue grew 35% year over year as its number of active buyers grew 61% to more than 26,187. (Q3 revenue surged 77% when excluding sales of COVID-19 masks by a single customer in both periods.)

Now, Xometry—which raised more than $300 million in an initial public offering of stock in July—is ready for mammoth growth by acquiring for $300 million the B2B marketplace company Thomas, which operates Thomasnet.com with more than 1.3 million registered users. Thomas’s client base includes such organizations as manufacturers General Electric Co., Johnson & Johnson, Lockheed Martin, and Eaton Corp.; distributor W.W. Grainger Inc.; the National Aeronautics and Space Administration; and the U.S. departments of defense, transportation, and homeland security. Thomasnet hosts more than 500,000 commercial and industrial sellers.

“Xometry and Thomas share a common mission of championing the digital transformation of the manufacturing industry, one of the largest sectors of the global economy and the foundation for innovation everywhere,” says Randy Altschuler, CEO of Xometry. “Thomas brings strong brand equity, trusted and extensive relationships, proprietary data and advanced full-funnel marketing services, assets that perfectly complement our digital marketplace.” Altschuler adds that Thomas will help Xometry “introduce new services, cross-sell to our combined base and expand our suite of products, particularly in fintech and digital marketing.”

Thomas’s industrial capabilities cover such areas as tube fabrication, metal stampings and rubber moldings, which complement Xometry’s capabilities in injection molding, 3D printing and die casting for a combined total addressable market of $2.4 trillion, the two companies said in a presentation when they announced the acquisition on Dec. 8.

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For the 12 months ended Sept. 30, 2021, Xometry reported revenue of $189 million and Thomas $67 million, for a combined total of $256 million, Xometry noted. Xometry’s gross profit for that period was $46 million, for a gross margin of 24%; Thomas’s gross profit was $57 million, for a gross margin of 85%. Going forward, Xometry figures the combined gross margin will run 40-45%.

“We expect the deal to accelerate our path to profitability and expect full-year profitability in 2023,” Xometry says. For the third quarter, Xometry reported a net loss of $14.7 million.

Goldman Sachs & Co. LLC acted as the financial advisor and BakerHostetler the legal advisor to Xometry. DC Advisory US was the financial advisor and Winston & Strawn LLP the legal advisor to Thomas.

In November, Xometry acquired the assets of digital technology companies FactoryFour and Big Blue Saw to expand its services to manufacturers.

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