Sebring Software announced recently that it has closed two concurrent mergers. The company completed one merger with Orthodontic Specialists Management, LLC in Florida; the other merger is with Absolute Aesthetic & Restorative, which is based in Arizona.
Founded in 2005 by Dr. Alan D. Shoopak, Orthodontic Specialists Management (OSM) is comprised of fifteen doctors and manages thirty-one state-of-the-art orthodontic practices located throughout Florida. The company's 2012 revenue has been estimated at $16 million dollars.
Absolute Aesthetic & Restorative (NYSE:AAR) was founded in 2010 by Dr. Byron Larsen and Dr. Mitch Ellingson. The company, with its 2012 revenue estimated at $2 million dollars, operates two cosmetic and family practices in the greater Phoenix Valley. AAR offers highly specialized services to its patients, thanks to its unique industry certifications.
These transactions are a part of Sebring's strategy to enter the healthcare market through mergers of Dental Practice Management (DPM) companies. With combined 2012 revenue of $18 million, both AAR and OSM bring significant DPM assets to Sebring, providing a solid platform for the company to launch its unique software applications to the healthcare industry.
Leif Anderson, Sebring's President and CEO, commented, "Owning assets in the DPM space allows Sebring to enter the dental sector in two large, growing and profitable markets. As we move forward with our growth strategy, we plan to integrate our software applications in all practices to provide cost efficiencies to the back office and further increase profitability."
He continued, "We will continue to search for strategic mergers in the healthcare sector, and I look forward to updating our shareholders as we advance through our expansion."
To close the transactions, Sebring raised $16.0 million from a group of lenders led by MidMarket Capital Partners. Under the terms of the loan agreement, the lenders agreed to loan the company $16.0 million in two separate tranches; $11.0 million and $5.0 million. Sebring issued an 8K on the transaction on May 1, 2013, which can be found at sec.gov.
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