Schein to swallow another

Jun 12, 2007 4:38 AM  By

Another week, another Henry Schein acquisition. This week the medical, dental, and veterinary supplies merchant is setting its sights down under: Henry Schein has announced it intends to make an offer to acquire Software of Excellence International Ltd., a New Zealand publicly listed company with revenue from continuing operations of about $19.1 million for its year ended March 31.

Software of Excellence provides clinical and practice management solutions to dental professionals to more than 5,000 practices in the U.K., Ireland, Australia, and New Zealand; it is also the largest supplier of dental software in Australia and New Zealand. “Software of Excellence is well respected in these markets and will be an important addition to Henry Schein’s current technology platform, enhancing the value-added services proposition to our customers,” said Stanley M. Bergman, chairman/CEO of Henry Schein in a statement. “Our intention would be to have the management team of Software of Excellence join Henry Schein and keep Software of Excellence’s existing infrastructure substantially intact.”

Melville, NY-based Henry Schein on June 11 delivered a formal takeover notice to Software of Excellence, which commences the takeover process under New Zealand takeover rules. If completed, the total purchase price excluding transaction costs will be approximately $58.0 million, expected to be paid in cash. Henry Schein expects the proposed transaction to be neutral to 2007 earnings and slightly accretive to 2008 earnings.