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DENTSPLY SIRONA (XRAY) Boosts Clear Aligner Foothold With Buyout
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DENTSPLY SIRONA Inc. (XRAY - Free Report) recently acquired substantially all of the assets of Propel Orthodontics in a deal worth $131 million (all in cash). Notably, the assets include the VPro device and the Fastrack Mobile App.
It is worth mentioning that Propel Orthodontics has made a name for itself as a leading innovator, manufacturer and worldwide seller of orthodontic devices. The company offers in-office and at-home orthodontic accessory devices, which include high frequency vibration technology, to orthodontists and their patients. These devices enhance patient comfort and has the ability to reduce the overall treatment time.
Per management, the buyout lends support to DENTSPLY SIRONA’s innovation efforts in the orthodontics space. The deal also allows the company to make further investments when it comes to product development in this space in the near term.
Deal Rationale
The buyout marks a significant step in DENTSPLY SIRONA’s efforts to further solidify its presence in the rapidly growing clear aligner market. The product lines (in this buyout) are complementary to the company’s Byte and SureSmile businesses.
Image Source: Zacks Investment Research
Moreover, the transaction is a solid strategic fit with DENTSPLY SIRONA and is likely to boost the its Technologies & Equipment business line.
Notable Acquisitions
In January 2021, the company acquired Byte, a fast-growing clear aligner company, in an all-cash deal for $1.04 billion. It is worth mentioning that Byte maintained its leadership position in the rapidly-growing direct-to-consumer, doctor-directed clear aligner market.
In the same month, the company also acquired Datum Dental, which will add the clinically superior proprietary technology GLYMATRIX and its strong OSSIX biomaterial to DENTSPLY SIRONA’s digital dentistry portfolio.
Market Prospects
Per a report by Fortune Business Insights, the global orthodontics market was worth $4.06 billion in 2018 and is anticipated to reach $9.72 billion by 2026, witnessing a CAGR of 11.6% during the forecast period (2019-2026). Hence, the buyout is well-timed for DENTSPLY SIRONA.
Price Performance
Shares of this Zacks Rank #3 (Hold) company have gained 25.2% on a year-to-date basis compared with the industry’s growth of 6.9%.
HCA Healthcare’s long-term earnings growth rate is expected at 12.3%.
DaVita’s long-term earnings growth rate is estimated at 14.4%.
Encompass Health’s long-term earnings growth rate is projected at 17.3%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
DENTSPLY SIRONA (XRAY) Boosts Clear Aligner Foothold With Buyout
DENTSPLY SIRONA Inc. (XRAY - Free Report) recently acquired substantially all of the assets of Propel Orthodontics in a deal worth $131 million (all in cash). Notably, the assets include the VPro device and the Fastrack Mobile App.
It is worth mentioning that Propel Orthodontics has made a name for itself as a leading innovator, manufacturer and worldwide seller of orthodontic devices. The company offers in-office and at-home orthodontic accessory devices, which include high frequency vibration technology, to orthodontists and their patients. These devices enhance patient comfort and has the ability to reduce the overall treatment time.
Per management, the buyout lends support to DENTSPLY SIRONA’s innovation efforts in the orthodontics space. The deal also allows the company to make further investments when it comes to product development in this space in the near term.
Deal Rationale
The buyout marks a significant step in DENTSPLY SIRONA’s efforts to further solidify its presence in the rapidly growing clear aligner market. The product lines (in this buyout) are complementary to the company’s Byte and SureSmile businesses.
Moreover, the transaction is a solid strategic fit with DENTSPLY SIRONA and is likely to boost the its Technologies & Equipment business line.
Notable Acquisitions
In January 2021, the company acquired Byte, a fast-growing clear aligner company, in an all-cash deal for $1.04 billion. It is worth mentioning that Byte maintained its leadership position in the rapidly-growing direct-to-consumer, doctor-directed clear aligner market.
In the same month, the company also acquired Datum Dental, which will add the clinically superior proprietary technology GLYMATRIX and its strong OSSIX biomaterial to DENTSPLY SIRONA’s digital dentistry portfolio.
Market Prospects
Per a report by Fortune Business Insights, the global orthodontics market was worth $4.06 billion in 2018 and is anticipated to reach $9.72 billion by 2026, witnessing a CAGR of 11.6% during the forecast period (2019-2026). Hence, the buyout is well-timed for DENTSPLY SIRONA.
Price Performance
Shares of this Zacks Rank #3 (Hold) company have gained 25.2% on a year-to-date basis compared with the industry’s growth of 6.9%.
Stocks to Consider
Some better-ranked stocks from the broader medical space are HCA Healthcare, Inc. (HCA - Free Report) , DaVita Inc. (DVA - Free Report) and Encompass Health Corporation (EHC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
HCA Healthcare’s long-term earnings growth rate is expected at 12.3%.
DaVita’s long-term earnings growth rate is estimated at 14.4%.
Encompass Health’s long-term earnings growth rate is projected at 17.3%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>