Align Technology To Acquire Exocad In Digital Dentistry Space

Align Technology, Inc. (NASDAQ:ALGN) recently inked a deal to acquire Germany-based privately held exocad Global Holdings GmbH. exocad is a global pioneer in the dental CAD/CAM software space and specializes in offering fully-integrated workflows to dental laboratories and practices. It boasts an extensive network of customers, partners and resellers across 150 countries.

This acquisition should widen Align Technology’s reach in digital dentistry by enhancing adoption of Invisalign treatment among more than 300 million potential patients globally.

More About the Acquisition

The takeover is likely to bolster Align Technology’s digital platform that provides innovative tools and features for diagnostic, restorative, implant and orthodontic workflows. Once the acquisition is completed, exocad’s expertise in restorative dentistry, implantology, guided surgery and smile design will be integrated into Align Technology’s portfolio of Invisalign and iTero digital solutions.

This acquisition deal comes as a continuation of the collaboration efforts between Align Technology and exocad that initiated in 2017 with the integration of Align’s iTero intraoral scanners and exocad Chairside CAD software.

Per the terms of the deal, Align Technology will pay nearly 376 million euros in cash to acquire exocad. The deal is expected to close during the second quarter of 2020.

Market Prospects

Per a report by Technavio, the global dental CAD-CAM market is anticipated to see a CAGR of 8.15% during the forecast period of 2017-2021.Hence the acquisition deal is well-timed.

Recent Development

In September 2019, Align Technology inked a global distribution deal with Zimmer Biomet (NYSE:ZBH) Dental business to boost its portfolio of iTero Element suite of intraoral scanners.This deal should aid Align Technology to expand the reach of its iTero scanners and services in the growing digital restorative market. The collaboration will also offer customers of Zimmer Biomet Dental the opportunity to access Invisalign clear aligners through the iTero platform.

Competitive Scenario

The digital dentistry market is highly competitive with two of the prominent dental CAD/CAM market vendors being Danaher Corporation (NYSE:DHR) and DENTSPLY SIRONA (NASDAQ:XRAY) .

Danaher cemented its position within the global dental CAD/CAM market with the acquisition of Nobel Biocare in 2014.In a bid to strengthen its CAD-CAM-based dental unit, DENTSPLY acquired OraMetrix — a leading industry provider of innovative 3-D technology solutions — in 2018.

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