Xometry Inc., an online marketplace for custom-manufactured parts, has acquired rival firm MakeTime Inc. and raised $25 million to fuel future expansion.
The deal creates what Xometry says is the industry’s largest distributed on-demand manufacturing network, with more than 2,300 domestic manufacturers and machine shops that make prototypes and smaller runs of parts for customers including BMW AG BMW +0.65% and General Electric Co. , which are also investors.
Businesses upload their design files to the Gaithersburg, Md.,-based firm’s platform, which uses machine learning to match companies with vetted suppliers, generating instant price quotes and lead-time estimates. The aim is to streamline the sourcing process and reduce costs for manufacturers.
The combined company has a total of about 170 employees, with offices in Maryland and in Lexington, Ky., where MakeTime is based. Xometry declined to disclose the financial terms of the deal.