In a filing with securities regulators, Dentsply Sirona Inc. revealed what it paid this spring for a Texas-based provider of digital dental technology.
The price, $120 million, was not disclosed when Dentsply Sirona first announced it was buying OraMetrix Inc., a privately held company that specializes in orthodontic-treatment planning software, wire bending and clear aligner manufacturing.
But Dentsply Sirona disclosed the figure as part of its earnings report for the second quarter of 2018, filed with the U.S. Securities and Exchange Commission. The dental supply company has a corporate headquarters in York.
The $120 million represented the cost of all outstanding shares in OraMetrix, Dentsply Sirona said in its filing. In addition, the company said it would make an additional payment of $30 million, subject to earn-out provisions, which typically involve meeting financial goals. No details were disclosed in the Dentsply Sirona filing.
While sales rose in the second quarter for Dentsply Sirona, the company suffered widening losses due largely to charges for goodwill impairment.
Sales for the three months ending June 30 weighed in at $1.04 billion, up from $992.7 million for the same period last year. However, the company posted a second-quarter net loss of $1.12 billion, up from a loss of $1.05 billion in the second quarter of 2017.
The biggest drag on earnings was a $1.09 billion charge for goodwill impairment, resulting from an annual review of its business units. The review determined that some units would not meet expectations for sales and operating profit due to competition, market trends and changes in distribution, among other factors.
The company said it has been shifting its distribution relationships, primarily in the U.S, from an exclusive basis to a non-exclusive basis. And its U.S. distributors, the company said in its filing, have been offering competing, lower-priced products to those of Dentsply Sirona.