Henry Schein, Inc. (Nasdaq: HSIC), the world’s largest provider of health care products and services to office-based dental, animal health, and medical practitioners, and Internet Brands, a KKR portfolio company, announced today the completion of a joint venture to form Henry Schein One. The new company is designed to deliver integrated dental technology to help the profession improve practice management and marketing as well as patient communication. The transaction was announced on April 3, 2018.
Henry Schein One combines Henry Schein Practice Solutions’ products and services, such as Dentrix®, Dentrix Ascend®, Easy Dental®, and TechCentral™, as well as Henry Schein’s international dental practice management systems, including Software of Excellence®, Logiciel Julie, InfoMed®, Exan®, and Labnet™, with the dental businesses of Internet Brands, including web-based solutions such as Demandforce®, Sesame Communications®, Officite®, and DentalPlans.com®. The company will deliver advanced, cutting-edge technology and enhanced products to address the challenges created by the current lack of technology integration in dental practices.
“With the creation of Henry Schein One, we have advanced our dental business strategy by bringing together leaders in dental software and web-based applications to build a powerful new engine that will enable dental professionals to be more efficient and to enhance their ability to deliver high-quality care to patients,” said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer, Henry Schein, Inc. “We firmly believe that the products, services, and solutions we will deliver through our combined expertise are fundamental to what practitioners value and essential to driving demand for their business success.”
The combined entity, which will serve markets globally, had pro-forma 2017 sales of approximately $400 million, of which approximately $100 million is from the Internet Brands dental businesses. Henry Schein One expects to realize between $20 million and $30 million in annual synergies by the end of year three. Financial terms of the agreement were not disclosed.
“With Henry Schein One, we intend to leverage Henry Schein’s strength in practice management software with our leading digital marketing applications to help each member of the dental team work smarter and faster to improve the practice and the entire patient experience,” said Bob Brisco, CEO of Internet Brands. “We are very excited about what we can do together to strengthen and expand our combined product offerings to enable dental teams to be better business managers, clinicians to be more efficient, and patients more loyal to the practice.”
Henry Schein will be the majority shareholder with a more than 70% ownership position, with senior management from Henry Schein and Internet Brands serving on the board of Henry Schein One. The company’s Chief Executive Officer is James A. Harding, who formerly served as the Chief Technology Officer of Henry Schein.
“Henry Schein One’s vision is to deliver technology innovation to improve every aspect of practice management,” said Mr. Harding. “We plan to connect our existing and future portfolio of practice technology and products so it all works together as one integrated system to automate more tasks and simplify the digital workflow.”
Henry Schein One will be headquartered in American Fork, Utah, which is the current home of Henry Schein Practice Solutions. For more information, visit www.henryscheinone.com.