In a growing national trend to privatize small public companies, Coast Dental Services, Inc. has announced that shareholders have approved a merger into Intelident Solutions, Inc. effected through a management buyout.
Following this morning's approval of the management buyout at a Special Meeting of Coast Dental Services, Inc. shareholders, Intelident Solutions will acquire the shares of unaffiliated shareholders for $9.25 per share in a cash transaction. The purchase price represents a 160% premium over Coast Dental's recent trading price of $3.55.
Coast Dental's merger into Intelident Solutions is expected to accelerate the growth of Coast Dental. Coast Dental, headquartered in Tampa, is a leading provider of comprehensive non-clinical practice management services to 106 dental centers across four southeastern states.
Coast Dental and its affiliated group dental practices, principally Coast P.A., have 850 employees in four states. At the close of the transaction, Coast Dental will become a subsidiary of Intelident Solutions. Intelident Solutions will maintain its corporate headquarters in Tampa.
Intelident Solutions was formed through a management buyout by members of the Coast Dental management group. Officers for the new enterprise include Thomas J. Marler, Chief Executive Officer, Timothy G. Merrick, Vice President of Finance, Patricia A. Huie, Vice President and General Counsel, and Michael T. Smith, Vice President of Information Technology.
All were formerly members of the Coast Dental management team. The eight-member Intelident Solutions Board of Directors will be chaired by Dr. Terek Diasti, formerly the Chairman of the Board of Coast Dental. Dr. Adam Diasti will continue as Dental Director, President of Coast P.A. and will be the Vice Chairman of Intelident Solutions.
Intelident Solutions will retain all Coast Dental employees and the dental centers will continue to operate under the Coast Dental brand name. There will be no interruption in the continuity of care for patients as a result of the merger; rather, Coast Dental patients will benefit from an expansion of dental centers, better technologies and enhanced patient treatment rooms.
"We're confident that as a privately held business, Intelident Solutions will be able to more efficiently utilize its capital to promote future growth," said Tom Marler, CEO, Intelident Solutions.
"Like many small public companies that have gone private over the past two years, we found the expenses of being a public enterprise far exceeded the advantages and provided too few benefits to our shareholders. We are pleased that this all-cash transaction provides a substantial share price premium and liquidity event to our unaffiliated shareholders while positioning our Company to excel within the dental practice services industry. Intelident Solutions will continue to invest in Coast Dental's dental centers and will position itself as the leading enterprise within the dental practice services industry."
Intelident Solutions will use much of the savings associated with going private to promote service enhancements at Coast Dental's dental centers. Coast Dental will expand its clinical and information technology upgrade programs and continue its ongoing capital investment program to enhance the patient treatment rooms in its dental centers.
Intelident Solutions expects to open five new Coast Dental dental centers within the next six months, including two in the Tampa area, and one in the Atlanta area. Intelident Solutions expects to make additional announcements in the coming weeks about strategic partnerships it has finalized with leading national vendors in the dental healthcare field.
