Henry Schein (NSDQ:HSIC) said yesterday that it and Internet Brands formed joint venture Henry Schein One, which aims to produce integrated dental technology focused on improving practice management, marketing and patient communication.
The deal was originally announced on April 3, Melville, N.Y.-based Henry Schein said, and financial terms of the agreement have not been disclosed.
“With the creation of Henry Schein One, we have advanced our dental business strategy by bringing together leaders in dental software and web-based applications to build a powerful new engine that will enable dental professionals to be more efficient and to enhance their ability to deliver high-quality care to patients. We firmly believe that the products, services, and solutions we will deliver through our combined expertise are fundamental to what practitioners value and essential to driving demand for their business success,” Henry Schein CEO & board chair Stanley Bergman said in a press release.
The joint venture combines Henry Schein’s Practice Solutions products and services including Dentrix, Dentrix Ascend, Easy Dental and TechCentral and its international dental practice management systems including its Software of Excellence, Logiciel Julie, InfoMed, Exan and Labnet. Internet Brands will supply its dental business, including web-based Demandforce, Sesame Communications, Officite and DentalPlans.com, the companies said.
“With Henry Schein One, we intend to leverage Henry Schein’s strength in practice management software with our leading digital marketing applications to help each member of the dental team work smarter and faster to improve the practice and the entire patient experience. We are very excited about what we can do together to strengthen and expand our combined product offerings to enable dental teams to be better business managers, clinicians to be more efficient, and patients more loyal to the practice,” Internet Brands CEO Bob Brisco said in a prepared release.
The newly formed JV had pro-forma 2017 sales of approximately $400 million, with $100 million coming from Internet Brands’ dental biz, Henry Schein said. The company hopes to realize between $20 million and $30 million in annual synergies by the end of its third year.
Henry Schein will maintain a more-than 70% ownership position with senior managers from both companies serving on the board. The company is slated to be headquartered in American Fork, Utah.
“Henry Schein One’s vision is to deliver technology innovation to improve every aspect of practice management. We plan to connect our existing and future portfolio of practice technology and products so it all works together as one integrated system to automate more tasks and simplify the digital workflow,” Henry Schein One CEO and former Henry Schein CTO James Harding said in prepared remarks.
In May, Henry Schein saw shares fall despite the medical device maker beating expectations on Wall Street with its first quarter 2018 earnings release.
