Align Technology
(NSDQ:ALGN) announced it has agreed to acquire dental software company Exocad (Darmstadt, Germany) for approximately $420 million in cash.
The move will add Exocad’s experience in restorative dentistry, implantology, guided surgery and design to Align’s technology portfolio, which includes Invisalign clear-aligner orthodontic and iTero digital solutions. Exocad will also bring nearly 200 digital dentistry partners and more than 35,000 licenses installed worldwide to the deal, according to San Jose, Calif.-based Align.
“Dentistry today is evolving digitally, with technology advances and consumer awareness driving new opportunities in ortho-restorative and comprehensive treatment. Align is in a unique position to lead the digital transformation of dentistry by reimagining comprehensive treatment planning and by reinventing the way orthodontists and GPs practice with our digital platform for transforming smiles,” said Joe Hogan, Align Technology president and CEO, in a news release. “Exocad allows us to broaden and deepen Align’s digital platform by addressing restorative needs in our end-to-end digital platform that facilitate ortho-restorative and comprehensive dentistry and accelerates adoption of Invisalign treatment among the more than 300 million potential patients worldwide.”
The companies began working together in 2017, integrating Align’s iTero intraoral scanners and Exocad Chairside CAD software. The collaboration later expanded to a fully-validated workflow that enabled in-house milling of dental restoration on any compatible milling machine, and most recently, at the Chicago Midwinter Meeting 2020, when Exocad announced a new connector.
“I am excited by the enormous growth opportunity for Exocad and its customers that comes with being a part of Align Technology,” said Exocad CEO Tillmann Steinbrecher. “Together, we will further strengthen Exocad’s position as a key technology provider for the dental CAD/CAM industry and drive continuous innovation with the open and integrated approach that is the foundation of our company.”
Exocad will continue to operate as it exists today. Co-founders Steinbrecher and Maik Gerth and their team are expected to remain after the transaction closes and report to Align Technology CFO John Morici.
Exocad is majority-owned by Carlyle Europe Technology Partners. The deal is expected to close during the second quarter of 2020. Align anticipates the acquisition to be gross-margin accretive for GAAP EPS to be dilutive for the fiscal year 2020, due to acquisition-related costs.
