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DentalXChange Announces Recapitalization with KKR to Advance Technology and Innovation in Dental Revenue Cycle Management

via Business Wire

KKR’s strategic investment to accelerate DentalXChange’s product development and scalable growth to drive value creation across the industry

KKR, a leading global investment firm, today announced the recapitalization of DentalXChange (“DXC” or the “Company”), a leading provider of revenue cycle management (RCM) solutions for the U.S. dental market. In connection with the transaction, Bregal Sagemount exited its investment in DXC, following a successful strategic partnership with the Company.

As a critical technology partner for the dental ecosystem for over three decades, DXC facilitates more than two billion transactions annually and helps industry stakeholders navigate the complexities of dental RCM. The Company’s comprehensive product suite combined with strong collaboration with payers, providers, and practice management system partners has enabled DXC to deliver significant efficiencies in the ecosystem, which are poised to accelerate over the coming years.

“We seek opportunities where we can serve as differentiated partners with management teams to build world-class businesses that can positively impact the healthcare system. We have long admired the important role that DXC plays in the dental value chain, with its robust network and best-in-class solution set,” said Hunter Craig, Managing Director at KKR. “Customers consistently view DXC as a collaborative and innovative business partner, and we look forward to helping the Company further expand its capabilities and streamline operations for all stakeholders,” added Alex Ward, Director at KKR.

“KKR’s deep expertise across the dental landscape, experience with technology-led innovation and extensive network of key industry partners will meaningfully accelerate DXC’s next phase of growth,” said DentalXChange CEO, Paul Kaiser. “We look forward to expanding our use of automation and AI to reduce administrative complexity, enhance provider workflows, and create a seamless payer experience.”

“It has been a privilege to partner with the DXC team and support the Company’s growth through key investments in technology and talent,” said Bregal Sagemount Partner, Blair Greenberg. “We are proud of what we accomplished together and wish the team continued success in this next phase of growth,” added Phil Yates, Partner at Bregal Sagemount.

DentalXChange will continue to operate under its current leadership team, led by CEO Paul Kaiser.

As part of the recapitalization, KKR will support DXC to create a broad-based equity ownership program, which will provide equity to all employees at the Company, enabling the full DXC team to participate in growth and value creation. This broad-based equity strategy is based on the belief that team member engagement through ownership is a key driver in building stronger companies. Since 2011, 70 KKR portfolio companies have awarded billions of dollars of total equity value to nearly 170,000 non-senior management employees.

KKR is making its investment in DentalXChange through its Ascendant Fund, which invests in middle market businesses in North America as part of KKR’s Americas Private Equity platform.

TripleTree served as financial advisor to DentalXChange and Goodwin Procter LLP provided legal counsel to Bregal Sagemount. William Blair served as exclusive financial advisor and Kirkland & Ellis LLP served as legal advisor to KKR.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

About DentalXChange

Since 1989, DentalXChange has been on the forefront of modernizing and innovating dental claims creating dental RCM solutions that bring ease to the payments process. Today, it has grown to support a current base approaching 200,000 dental providers and connectivity to nearly 1,400 payer plans. Headquartered in Irvine, CA, through its own clearinghouse, state of art technology consisting of modern APIs, and secure Web portals, DentalXChange processes over 1B EDI transactions, consisting of more than 300MM dental claims annually.

About Bregal Sagemount

Bregal Sagemount is a leading growth-focused private capital firm with more than $7.5 billion of cumulative capital raised. The firm provides flexible capital and strategic assistance to market-leading companies in high-growth sectors across a wide variety of transaction situations. Bregal Sagemount has invested in over 70 companies in a variety of sectors, including software, information / data services, financial technology & financial services, digital infrastructure, healthcare IT, and business & consumer services. The firm has offices in New York, Palo Alto, and Dallas. For more information, visit the Sagemount website: www.sagemount.com (http://www.sagemount.com/) or follow us on LinkedIn. (https://www.linkedin.com/company/bregal-sagemount)

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