A buzzy $3.2 billion startup that helps you get braces without seeing a dentist is planning to go public

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SmileDirectClub, a
provider of at-home teeth straightening systems that lets users
bypass the orthodontist’s office, has picked bankers for an
upcoming IPO, Axios has learned.

Details: The Nashville-based company expects
to file its S-1 document by the end of June, with J.P. Morgan
listed as lead manager. It was launched 6 years ago and expects to
do at least $1 billion in 2019 revenue.

  • SDC has raised nearly $400 million in private funding,
    including an infusion last fall at
    a $3.2 billion post-money valuation
    . Backers include Clayton,
    Dubilier & Rice, Spark Capital and Kleiner Perkins. Both Spark
    and KP did the deals out of their growth funds.
  • A company spokeswoman declined comment for this story.

SDC’s top comp is Align Technologies, the maker of Invisalign
products, which generated nearly $2 billion in revenue last year
and has a market cap just north of $20 billion. One big difference
is that SDC doesn’t use orthodontist offices for distribution, as
does Align, which has led some orthodontist organizations to file
safety complaints with state dental boards.

  • But Align also was a large investor in SDC, with around a 19%
    stake.
  • SDC last year sued Align for violating a non-compete agreement,
    and an arbitrator ruled in SDC’s favor earlier this month.
  • The ruling requires Align to sell back its equity in SDC to the
    company (at a below-market rate), close all 12 of its Invisalign
    stores and extend the non-compete agreement through August
    2022.


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Source: FS – All – Economy – News
A buzzy .2 billion startup that helps you get braces without seeing a dentist is planning to go public