Park Dental Partners plans to acquire a dental DSO for up to $46 million.

DentalGoodNews｜Recently, Park Dental Partners, Inc. (NASDAQ: PARK), a publicly listed Dental Service Organization (DSO), announced that it has entered into a definitive agreement with North Carolina-based Village Family Dental DSO to acquire the DSO, with total consideration expected to range from US$39.1 million to US$46 million.

Under the transaction agreement, the base consideration is US$39.1 million, including 474,535 shares of Park Dental Partners, Inc. restricted stock valued at US$9.2 million; in addition, the seller may receive up to US$4.6 million in contingent consideration based on EBITDA performance, and up to US$2.3 million in contingent consideration related to continued service. As a result, the potential total consideration for the transaction is up to US$46 million.

Following the completion of the transaction, Village Family Dental DSO will operate as a subsidiary of Park Dental Partners, Inc. and, under the existing management services arrangement, provide management and administrative support to Village Family Dental specialty dental practices. The relevant professional medical entities will remain independent and will continue to provide clinical dental services through licensed dentists. Park Dental Partners, Inc. and its Dental Service Organization (DSO) will not direct, control, or supervise clinical, professional, and patient care decisions, which will remain the responsibility of licensed dentists based on their professional judgment. The Village Family Dental-related practices are expected to continue operating under the "Village Family Dental" name.

Park Dental Partners, Inc. stated that the completion of this transaction marks its expansion into North Carolina, the fourth U.S. state in which it operates. The company said the transaction will establish a regional platform to support future organic growth and merger and acquisition opportunities.