YORK (PENNSYLVANIA) (dpa-AFX) - DENTSPLY International Inc. (XRAY) and Sirona Dental Systems Inc. (SIRO) said Tuesday that the Boards of Directors of both companies have unanimously approved a definitive merger agreement under which the companies will combine in an all-stock merger of equals.
Under the terms of the agreement, Sirona shareholders will receive 1.8142 shares of DENTSPLY for each existing Sirona share. Upon closing of the transaction, DENTSPLY shareholders will own 58% and Sirona shareholders will own 42% of the combined company.
The deal will result in the world's largest manufacturer of professional dental products and technologies with an implied pro forma equity value of about $13.3 billion, based on the closing prices of DENTSPLY and Sirona on September 14.
The new company will have net revenue of about $3.8 billion and adjusted EBITDA of more than $900 million on a pro forma basis for the last twelve months.
Upon closing of the transaction, Jeffrey Slovin, President and Chief Executive Officer of Sirona, will serve as Chief Executive Officer of the combined company and will be a member of the Board of Directors. Bret Wise, Chairman and Chief Executive Officer of DENTSPLY, will serve as Executive Chairman of the combined company.
The combined company will be called DENTSPLY SIRONA and trade on the NASDAQ under the symbol XRAY. DENTSPLY SIRONA's Global headquarters will be located in York, Pennsylvania, the location of DENTSPLY's current headquarters, while the International headquarters will be located in Salzburg, Austria.
The deal is expected to be completed in the first quarter of calendar 2016.
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