TDK to acquire Fabric8Labs, Inc. to accelerate data center initiatives

• A strategic acquisition that enhances TDK’s technology competitiveness across data centers.
• Scales the business for components essential to thermal management in data centers within a few years.
• Leverages successful investment by TDK Ventures, Inc., to strengthen TDK’s value creation chain.

TDK Corporation (TSE: 6762) announced today that it has entered into a definitive agreement to acquire Fabric8Labs, Inc. for up to 400 million USD in cash, comprising of an upfront payment and a multi-year earnout. Fabric8Labs is a pioneer manufacturing company with a proprietary and advanced metal 3D printing technology, Electrochemical Additive Manufacturing (ECAM). Upon closing, Fabric8Labs would become a wholly owned subsidiary of TDK. The transaction is subject to customary closing conditions, including regulatory clearances.

This acquisition represents a key part of TDK’s strategic investment and is actively driven by the current Medium-term Plan that will act as a catalyst to accelerate its data center initiatives. The transaction will enable TDK to expand its current offering to deliver an integrated solution with mission-critical technologies, including thermal management components in data center cooling systems, which will facilitate rapid business scale-up within a few years. Furthermore, by exploring applications for TDK’s passive components, we will ensure that data centers can manage the escalating data volumes and massive energy consumption needed to enable the social transformation driven by AI.

“Joining TDK group will give us the resources to scale our technology globally and to supply our current and future Tier 1 customers with the solutions they need with confidence in our ability to scale while we remain focused on our core mission,” said Jeff Herman, CEO of Fabric8Labs.

“This acquisition marks a pivotal step in accelerating TDK’s value creation. By harmonizing our technologies with Fabric8Labs’ innovative capabilities, we will be uniquely positioned to provide customers with innovative thermal management systems, high-efficiency power components, and advanced packaging techniques that define the next generation of data center performance,” said Noboru Saito, President & CEO, TDK Corporation.

The following is an outline of the company profile:
1. Company name: Fabric8Labs Inc.
2. Location: Headquartered in San Diego, CA
3. Established: 2015
4. Management: CEO and Co-Founder – Jeff Herman
CTO and Co-Founder – David Pain
5. Employees: approximately 150
6. Core business operations: Fabric8Labs provides next-generation manufacturing with patented Electrochemical Additive Manufacturing (ECAM) 3D printing technology, delivering breakthrough solutions across electronics, medical devices, communications, and semiconductor industries.
7. Select investors: New Enterprise Associates, Intel Capital, Lam Capital (the corporate venture arm of Lam Research), and SE Ventures (Schneider Electric’s venture capital fund).
8. Learn more about Fabric8Labs’ key technologies:

This proposed acquisition serves as a prime example of TDK’s transformation, driven by our value creation strategy. TDK’s venture capital arm, TDK Ventures, has been an investor in Fabric8 since its seed stage of financing, and TDK has supported Fabric8 with synergistic collaboration across its entire value chain. TDK will continue to contribute to the transformation of society by continuously transforming itself to realize a sustainable future.