DENTSPLY International Inc. has announced in a press release that it will be combining with Sirona Dental Systems, Inc. in an all-stock "merger of equals."
The transaction will create the world's largest manufacturer of professional dental products and technologies.
The combined company, which will be called DENTSPLY Sirona, will be able to provide a set of complementary offerings and end-to-end solutions that will enhance patient care.
The two companies are supported by their leading platforms in consumables, equipment, and technology.
Jon Santemma, the global head of healthcare investment banking at Jefferies LLC, who advised Sirona on the merger, told Reuters that the combination of the two companies makes them more relevant to dentists.
"There is a convergence now of consumables and technologies in the dental space," he said. "With the two of them together, DENTSPLY and Sirona can become even more relevant to dentists across their product needs."
Reuters also reported that DENTSPLY offers the single-use dental supplies, such as the paste and sealants while Sirona provides advanced technology equipment, such as the imaging systems and instruments.
The merger combines the two companies' offerings in one single entity.
Bret W. Wise, chairman and CEO of DENTSPLY, said in the press release that they are excited to be bringing the "two industry leaders together."
"DENTSPLY SIRONA will offer a comprehensive line of solutions to more effectively meet the needs of dental customers all over the world and advance patient care," he said.
Jeffrey T. Slovin, president and CEO of Sirona, adds in the press release that the combination brings together two companies that "share a culture of innovation."
"Combining Sirona's proven digital solutions and equipment with DENTSPLY's leading consumables platform creates the most comprehensive dental solutions offering available to meet customer demand in every key segment," he said.
Under the terms of the agreement, Sirona shareholders will be receiving 1.8142 shares of DENTSPLY for each existing shares of Sirona, according to the press release.
Reuters reported that the offer works out to $98.60 per share and represents a 0.7 percent discount to Sirona's Tuesday closing price.
Upon closing, which is expected on the first quarter of calendar 2016, DENTSPLY shareholders will own 58 percent of the combined company and 42 percent will be owned by Sirona shareholders, according to the press release.
Wise will be the executive chairman of the combined company while Slovin will be the CEO of the combined company.
