Align Technology, Inc. today announced that it has reached a settlement with Ormco Corporation (Ormco), a subsidiary of Danaher Corporation, to end all pending litigation between the parties and to begin a new strategic collaboration.
As part of the settlement, Align will make a cash payment of approximately $13 million to Ormco and issue approximately 7.6 million shares of Align's Common Stock to Danaher Corporation, Ormco's ultimate parent, that after issuance will be equal to approximately ten percent ownership interest in Align. Based on the closing price of Align's Common Stock on Friday, August 14, 2009 the value of the shares is approximately $77 million. The issuance of a portion of the shares is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. For a summary of the terms of the transaction, please refer to the Company's Form 8-K filed today.
Align and Ormco have also agreed upon an exclusive collaboration over the next seven years to develop and market an orthodontic product that combines the Invisalign(R) system with Ormco's Insignia(R) orthodontic brackets and arch wires system to treat the most complex cases. Each party will retain ownership of its pre-existing intellectual property, and each party will be granted intellectual property licenses in their respective field for jointly-developed combination products.