MBK Partners Signs Definitive Agreement to Acquire Medit in 2.4 Trillion Mega Deal

[Asia Economy Reporter Park So-yeon] MBK Partners is welcoming the global No.1 oral scanner company, ‘Medit,’ as a new investor. After being selected as the preferred negotiation partner on the 29th of last month, they signed the main acquisition contract with Medit within a month. The transaction amount is in the range of 2.4 trillion KRW, and it is known that Medit’s founder Jang Min-ho and related parties will reinvest a significant portion of the proceeds from the share sale.

According to the investment banking (IB) industry on the 29th, MBK Partners signed a share purchase agreement for 99.5% of shares with Medit’s major shareholder ‘Unison Capital Korea (hereafter, UCK)’ as well as the founder and related parties.

Founder Jang Min-ho, Related Parties, and Key Management Remain as Co-investors

Founder Jang Min-ho and related parties reaffirmed their confidence in the global digital dental market, Medit’s status, and growth potential, and will remain as co-investors by reinvesting a significant portion of the proceeds from the share sale. Medit’s key management also participated as co-investors. MBK Partners is reported to invest about 1 trillion KRW from MBK Partners Fund V. The deal is expected to close by the end of Q1 2023.

Medit is the global No.1 company in the oral scanner solution sector. Its global market share rose from 22% last year to 24% this year. According to market research firms, the global oral scanner market has grown at an average annual rate of 24% from 2018 to this year, and it is expected to record a growth rate of over 28% from next year through 2027. The global market penetration rate of oral scanners, which was only 3.9% in 2018, has reached the 10% range this year and is expected to reach 30-40% by 2027.

The oral scanner market was an oligopoly with five companies, including Medit, holding over 85% market share, but market experts predict it will solidify into a two-strong structure between Medit and 3Shape. Medit, which officially entered the oral scanner market in 2018, is evaluated to have a comparative advantage in all aspects including the accuracy and speed of advanced 3D scanning technology, product convenience and lightweight design, price, and compatibility.

Subsidiaries for sales channels have been established in the U.S., Germany, and China, and there are 230 dealerships in over 100 countries worldwide, which is also an advantage. Furthermore, all intellectual property-related lawsuits with competitors that had been ongoing in the EU (Germany) were concluded in Medit’s favor, alleviating concerns about Medit’s technological capabilities.

Medit’s sales last year were 190.5 billion KRW, and EBITDA was 105.9 billion KRW. This year, sales and EBITDA are expected to increase by more than 40% compared to last year, reaching approximately 270 billion KRW and 150 billion KRW, respectively.

MBK Partners stated, "The founder and key management all share the vision to grow Medit from the No.1 oral scanner company into a digital dental platform where medical professionals, dealerships, solutions, and devices form an ecosystem," adding, "We are pleased to share the ultimate goal of this investment."

This content was produced with the assistance of AI translation services.