Dentsply Sirona Acquires Byte

Dentsply Sirona has acquired Byte, a rapidly growing clear aligner company, in an all-cash deal for $1.04 billion.
 
As a result of the transaction, Dentsply Sirona adds scale to its SureSmile clear aligner business and strengthens its connection with dental professionals. With the global reach and supply chain expertise of Dentsply Sirona, and the direct-to-consumer system that Byte brings, the combined company’s clear aligner platform is well-positioned to drive additional growth.
 
Byte’s Unique Business Model
Byte has developed a business model built on doctor-directed care that provides excellent outcomes for patients with mild to moderate orthodontic needs. Byte was founded on the commitment to improve access and affordability to orthodontic care using a nationwide network of licensed-dentists and orthodontists. It offers effective treatment planning and an easy-to-use clear aligner solution delivered directly to a consumer’s home. The CEO of Byte, Neeraj Gunsagar, and the existing management team will continue to operate the business.
 
Don Casey, CEO of Dentsply Sirona, commented, “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. 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.”
 
Neeraj Gunsagar, CEO of Byte added, “We’ve been impressed with the passion that Dentsply Sirona has for innovation in dentistry. 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.” 
 
Jorge Gomez, chief financial officer of Dentsply Sirona, stated, “As we bring the two businesses together, we are confident that we can unlock incremental growth and further capitalize on the increasing consumer demand for clear aligner solutions. This transaction is immediately accretive to Dentsply Sirona’s revenue growth rate and Non-GAAP EPS. In addition, we expect the acquisition to be accretive to Dentsply Sirona’s long-term financial commitments. We’re thrilled that Neeraj and his team are joining our company as we continue to focus on driving growth and value for our shareholders.” 
 
Accretive to Dentsply Sirona’s long-term financial targets and Non-GAAP EPS in 2021: Byte is expected to generate 2021 run-rate sales of at least $200 million. Combined with the SureSmile business, which has an expected revenue run-rate of $100 million by the end of 2021, Dentsply Sirona expects a combined clear aligner revenue run-rate in excess of $300 million by the end of 2021.
 
The transaction closed on December 31, 2020 and was funded with cash on Dentsply Sirona’s balance sheet.