DENTSPLY Sirona Inc. (XRAY Quick QuoteXRAY - Free Report) is set to acquire Israel-based MIS Implants Technologies for $375 million in cash. The transaction is expected to be accretive to adjusted earnings within the first twelve months of the deal closure.

MIS Implants Technologies is a northern Israel (Savion)-based dental implant manufacturer that has a strong customer base across 65 countries, with annual sales of approximately $80 million.

According to data available from Markets & Markets, the global dental implants market is estimated to grow at a CAGR of 7.2% for the forecasted period of 2015-2020. We believe that the latest acquisition will help DENTSPLY to grab significant market share in the long run.

Merger and Acquisition activities have been a key growth driver for DENTSPLY for long. The recently completed merger with Sirona was a key positive for the company. The combined entity will benefit from revenue and cost synergies in 2016 and beyond.
 

DENTSPLY SIRONA Revenue (TTM)

DENTSPLY SIRONA Revenue (TTM) | DENTSPLY SIRONA Quote

Also, the emerging markets provide significant opportunities for the combined company as these areas are vastly untapped with low dental products penetration.

However, integration will be a risk in the near term. Additionally, higher capital expenditure on product development coupled with persistent decline in sales is expected to put margins under pressure.

Zacks Rank & Key Picks

DENTSPLY has a Zacks Rank #3(Hold).

Better-ranked stocks in the medical space are Halyard health , Bard C R Inc. and Conmed Corp (CNMD Quick QuoteCNMD - Free Report) . While Halyard health holds a Zacks Rank #1 (Strong Buy), both Bard C R and Conmed Corp carry a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>