TODAY'S PAPER
75° Good Evening
75° Good Evening
BusinessTechnology

Henry Schein to buy 50% stake in Ortho2 of Ames, Iowa

Ortho2's software is used to manage the practices of almost 1,700 orthodontists

Henry Schein Inc., based in Melville, was named

Henry Schein Inc., based in Melville, was named to Fortune's list of companies that are "changing the world." Photo Credit: Barry Sloan

Henry Schein Inc., in its third major deal in April, Monday said it is acquiring a 50 percent stake in a maker of software for orthodontists.

The Melville-based distributor of products to the offices of dentists and physicians announced it is taking a stake in closely held Ortho Computer Systems Inc., also known as Ortho2, based in Ames, Iowa.

Ortho2, founded in 1982, has more than 70 employees and had revenue of $14 million in 2017. Its software is used to manage the practices of almost 1,700 orthodontists, the companies said.

Financial terms were not disclosed.

"With this investment in Ortho2, we round out our dental software portfolio and gain a leadership position in orthodontist practice management software," Stanley M. Bergman, chairman and chief executive of Henry Schein, said in a statement.

Earlier this month, Henry Schein cut a deal to roll its dental-practice software unit into a joint venture with Internet Brands in American Fork, Utah. Internet is based in El Segundo, California.  

 Henry Schein also said it would spin off its $3.5 billion animal health supplies business and merge it with Vets First Choice, based in Portland, Maine.

The deal with Ortho2 is expected to be neutral to the 2018 diluted earnings per share of Henry Schein, Long Island's largest publicly traded company by revenue. 

"The ability to leverage Henry Schein's comprehensive ecosystem will allow us to offer a turnkey solution including software, digital imaging, equipment, supplies, and many other benefits,"  said Amy Schmidt, president of Ortho2.

Henry Schein shares closed down 1 percent to $76 on Monday. The stock has lost 12.4 percent in the past 12 months.

Comments

We're revamping our Comments section. Learn more and share your input.

More news