Dentsply Sirona (NSDQ:XRAY) announced that it acquired clear dental aligner maker Byte in an all-cash deal worth $1.04 billion.
According to a news release, Byte possesses a leadership position in the direct-to-consumer clear aligner market, which Dentsply can now add to its SureSmile clear aligner business while strengthening its connection with dental professionals to drive growth.
Byte’s business model is designed on doctor-directed care for patients with mild to moderate orthodontic needs in an effort to improve access and affordability to this type of care. Offerings include treatment planning and the easy-to-use clear aligner being delivered directly to a consumer’s home.
Neeraj Gunsagar, the CEO of Byte, and the current management team at the company will continue to operate the business following the transaction.
“We’ve been impressed with the passion that Dentsply Sirona has for innovation in dentistry,” Gunsagar said in the release. “This combination provides Byte with unmatched resources and R&D capabilities that allow us to reach additional customers and accelerate our mission of changing the world one smile at a time. The transaction enhances our ability to offer affordable care to patients and increases awareness of the overall benefits of oral care.
“Our team is committed to driving our strong growth and we are delighted to join the Dentsply Sirona family as we execute on our shared mission.”
Dentsply Sirona expects Byte to generate 2021 run-rate sales of at least $200 million, combining with an anticipated $100 million from the SureSmile business. That makes for an expected non-GAAP earnings per share accretion of at least 5¢ in 2021 with incremental accretion in the years following.
The acquisition closed on Dec. 31, 2020, and was funded with cash on Dentsply Sirona’s balance sheet, the company said.
“Over the past two years, we have executed against our restructuring plan, strengthening the R&D, supply chain and commercial platforms, positioning Dentsply Sirona for long-term growth,” Dentsply Sirona CEO Don Casey said. “We are excited to take the next step in our evolution by bringing Byte into our organization. We have been pleased with the growth of our SureSmile clear aligner business and we are confident that adding the innovative platform of Byte adds scale for us in the important clear aligner market.
“We look forward to working with the talented team at Byte as we utilize our collective strengths to expand patient access to quality care and support the success of our dental partners around the world.”