Align Technology has signed a definitive agreement to acquire privately held exocad Global Holdings GmbH for about 376 million Euros in cash. According to the companies, the deal brings exocad’s expertise in restorative dentistry, implantology, guided surgery, and smile design to Align’s portfolio, extending its Invisalign and iTero digital solutions and paving the way for seamless, cross-discipline dentistry in the lab and at chairside.
“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.
Also, Hogan said, “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 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 say the acquisition is a natural next step in their collaboration, which started in 2019 with the integration of Align’s iTero intraoral scanners and exocad’s Chairside CAD software. The partnership later expanded to a fully validated workflow that enabled in-house milling of dental restoration on any compatible milling machine. Plus, the companies teamed up on the exocad Connector.
“I am excited by the enormous growth opportunity for exocad and its customers that comes with being a part of Align Technology,” said Tillmann Steinbrecher, CEO and cofounder of exocad. “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.”
The companies say exocad will continue to operate as it exists today, enabling it to support a broad ecosystem of partners and end-users and continue to deliver hardware-independent software solutions. Steinbrecher and cofounder Maik Gerth, along with their team, are expected to remain after the transaction closes and report to John Morici, Align Technology senior vice president and CFO.
“The acquisition of exocad adds a talented and passionate team as well as a highly innovative, industry-leading product suite to our portfolio, providing an excellent complement to our current workflow solutions,” said Morici. “We will continue to invest in and build on exocad’s leadership in the dental CAD/CAM market and look to them to make significant contributions to Align’s overall strategy.
Align will pay about 376 million Euros in cash to acquire exocad, which is majority owned by Carlyle Europe Technology Partners. The acquisition is expected to close in the second quarter of 2020. Align expects the acquisition to be gross margin accretive and its GAAP EPS to be dilutive for fiscal year 2020 due to acquisition-related costs.
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