Sonendo, a dental technology company and developer of the GentleWave System, has announced that it has executed a definitive agreement for the sale of its Software Segment assets comprised of TDO Software to Valsoft Corporation Inc, a Quebec company based in Montreal specialising in the acquisition and development of vertical market software businesses.
The sale of the TDO assets is effective 1 Mar 2024, and provides for total gross consideration of approximately US$16m, with $15m paid upon closing and the balance due in approximately 12 months pursuant to the terms of the agreement.
TDO Software is a developer of widely used endodontic practice management software solutions, designed to simplify practice workflow. TDO Software integrates practice management, imaging, referral reporting and CBCT imaging, and offers an integrated communication system with Sonendo’s GentleWave System which was first integrated in August 2018.
In addition, Sonendo announced that it has reached an agreement with Perceptive Credit Holdings, LP to amend its Amended and Restated Credit Agreement and Guaranty, dated as of 23 Aug 2021, as amended, Perceptive Loan. The amendment to the Perceptive Loan includes a one-time $15m principal repayment and initiates monthly principal repayments beginning in March 2024 along with modifications to certain other terms including revenue covenants.
“Today’s announcements reflect Sonendo’s commitment to balancing responsible cash preservation while pursuing long-term growth opportunities for the GentleWave system,” said Bjarne Bergheim, president and CEO of Sonendo. “TDO is a great technology, and we look forward to continued partnership with the team at Valsoft. Moving forward, this divestiture allows Sonendo to focus solely on growing awareness and adoption of the GentleWave procedure. At the same time, we know TDO users will be in great hands with Valsoft’s focus on furthering the TDO practice management software platform.”
“We are thrilled to welcome TDO to Valsoft,” said Gianni Farruggia, Valsoft operating partner. “TDO joining our Health & Dental portfolio is a milestone in our commitment to innovation and excellence in dental healthcare technology. TDO’s dedication to the endodontic community align perfectly with our vision. We look forward to leveraging TDO’s endodontic practice management expertise to enhance and expand the solutions we offer to the health and dental industry.”
Related: Sonendo Announces GentleWave System Integration With TDO Endodontic Software
