Xometry Acquires Thomas
Global digital manufacturing platform Xometry is buying Thomas for $300 million with eyes on furthering the digitization of the industry.
Acquiring Thomas will pave the way for Xometry to transform and digitize the manufacturing industry. (Image courtesy of Xometry.)
Seeking to quickly expand its customer base and accelerate the digitization of the manufacturing industry, Xometry, a global marketplace for on-demand manufacturing, is buying Thomas in a cash and stock transaction valued at $300 million. The merger will see Thomas receive $198.5 million cash and $101.5 million in Xometry Class A stock. The acquisition will help Xometry continue to scale its business while also opening new revenue streams with Thomas’s digital marketing offerings.
Xometry was founded in 2013 as a web-based marketplace for manufacturers to connect with clients and buyers and meet their needs on demand more efficiently and quickly rather than relying on established contracts or sales channels. Now a publicly traded company projected to clear over $200 million in annual revenue, Xometry serves many key industries, including aerospace, medical, consumer products, automotive and robotics. Xometry’s customer base includes 30 percent of the Fortune 500 and nearly 30,000 active buyers.
The company leverages artificial intelligence and machine learning to offer instant and accurate pricing to buyers and allows sellers to match their abilities and current capacity. The platform works to match buyers with the right sellers with correct prices and lead times. It’s a win-win for both sides of the transaction.
Thomas operates Thomasnet.com and offers similar on-demand manufacturing opportunities for buyers and sellers. Clear synergies exist between the merging companies, but Thomas adds a marketing component for manufacturers that Xometry currently lacks. Thomas’s platform offers advertising and marketing solutions for sellers, allowing them to showcase their abilities and manage the digital aspects like e-commerce and web design that are incredibly important when running a modern manufacturing business. Additionally, over 20 million sourcing sessions are initiated each year on Thomasnet, which generate valuable buyer intent data across dozens of industries that can be used to improve Xometry’s algorithms.
“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,” said 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. Together, we will introduce new services, cross-sell to our combined base and expand our suite of products, particularly in fintech and digital marketing.”
“Thomas has a long and proud history of bringing active buyers and sellers together on our Thomasnet.com platform and providing the data and marketing services that inform decision-making,” said Tony Uphoff, president and chief executive officer of Thomas. “In joining forces with Xometry, we’re uniting our products with the power of the Xometry marketplace so we can do even more for industry together.”
When Xometry was founded, the company’s vision was to digitize and transform an industry that was reluctant to change and stuck in its old-fashioned ways. Joining forces with Thomas is a clear signal that Xometry is serious about executing to its fullest potential. Together, Xometry and Thomas will be a powerhouse in on-demand manufacturing and digital operations.
The acquisition will push Xometry forward on a path to profitability, open up new relationships with key players in the manufacturing industry, and unite a data-driven marketplace with Thomas’s marketing and fintech solutions to create an all-encompassing suite of tools for on-demand manufacturers. This is a transaction with the potential to deliver game-changing results for an industry with vast untapped potential for innovation and transformation.