12-08-2021: Xometry acquired Thomas
Thomas is company with over a 100-year history in the industrial sector
On December 8, 2021, Xometry, a provider of 3D printing services and a wide range of other manufacturing methods, acquired Thomas, a leader in product sourcing, supplier selection, and digital marketing solutions. The $300 million transaction is now regarded as one of the benchmark examples of a successful acquisition both in the AM and manufacturing industry as a whole.
Thomas's history dates back to the turn of the 19th and 20th centuries when it operated as a publisher of books focused on products and services for industrial manufacturers. Its first publication, Hardware and Kindred Trades, released in 1898, later evolved into the Thomas Register of American Manufacturers – a 34-volume, three-part purchasing guide containing specifications and production data for thousands of companies.
Over time, Thomas evolved by selling its guides in printed form and on CD-ROMs. These guides featured information about local OEM manufacturers, distributors, maintenance, repair, and overhaul (MRO) services, divided into 19 regional editions across the United States.
The acquisition of Thomas quickly expanded Xometry's customer base. Xometry also planned to leverage Thomas's marketing services and data offerings. By the end of Q3 2021, Xometry had 26,187 active buyers, including nearly 30% of Fortune 500 companies.
Thomas maintained strong relationships with highly skilled buyers and engineers for enterprise-level organizations. At the time of acquisition, its platform, Thomasnet.com, boasted over 1.3 million registered users (including 93% of Fortune 1000 companies) and more than 500,000 commercial and industrial sellers, including 45,000 diversity-certified vendors. Each year, Thomasnet.com facilitated over 20 million sourcing sessions, generating extensive buyer intent data across multiple industries.
The acquisition of Thomas proved to be a financial success for Xometry. By integrating Thomas’s marketing and data services, Xometry increased revenue by 162% (reaching $132.6 million in Q2 2024) and significantly improved margins—from 23.5% in Q2 2021 to 39.9% in Q2 2024. The Supplier Services segment achieved an impressive 88.9% margin, driving profitability. The number of active customers grew from 23,942 to 61,530, underscoring the effective synergy between the two platforms.
For more insights, check out Tomasz Wykowski's excellent article: Acquisition Done Right - Xometry & Thomas Three Years Later.
Source: www.investors.xometry.com