123Dentist and Altima Dental Announce a Strategic Merger with Support from Peloton Capital, KKR, Heartland Dental, and Sentinel Capital Partners

123Dentist Combines with Altima Dental and Lapointe Group, Solidifying its Position as One of the Largest DSOs in Canada

TORONTO – August 10, 2022 – 123Dentist, Altima Dental, and Lapointe Group have merged to create one of the largest dental support organizations in Canada, with nearly 350 supported dental practices. The transaction is being financed through equity capital provided by 123Dentist's existing financial partner, Peloton Capital Management; new investors KKR, a leading global investment firm, and Heartland Dental, a KKR portfolio company and the leading dental support organization in the U.S.; and Sentinel Capital Partners, Altima Dental's existing financial partner.

123Dentist will continue its dentist-first, patient-focused growth strategy and pursue attractive opportunities with dentists looking for long-term partnership solutions that provide flexibility and autonomy to operate their dental practices in a manner that reflects the unique needs of each clinic and dentist partner. This includes opportunities for clinic level ownership by dentists, a feature incorporated at a majority of 123Dentist's supported practices today and designed to promote the continued delivery of high-quality care to patients. 123Dentist's leading platform provides its supported practices a wide range of administrative support services facilitated through a team of locally based regional managers and support centers in Vancouver, Toronto, and Montreal.

"We expect this merger to benefit Canadian dentists, dental professionals and patients alike, greatly expanding support services for an already thriving dentist community that focuses on the delivery of exceptional care, improving access to high quality dentistry services, and increasing opportunities for career advancement and mentorship for our team members," said Dr. Amin Shivji, CEO of 123Dentist.

The values and operating philosophies of 123Dentist align closely with those of Altima Dental, a leading dental support organization founded in 1993 and currently comprised of over 100 dental practices. As a result of this transaction, the combined business will have a national footprint and support dental practices that provide a wide range of dental care to more than 800,000 Canadian patients, with over 2.5 million patient visits annually.

"As a dentist-led organization for nearly 30 years, we know how important it is for patient care to have the dentist perspective when building a successful platform of supported dental practices. This is one of the many reasons why this combination will enable our supported dentists to continue to deliver an exceptional patient experience to Canadians," said Drs George Christodoulou and Sven Grail, co-Founders and co-CEOs of Altima Dental. "Now, as part of the 123Dentist family, we are incredibly well-positioned to further develop our capabilities as one of the leading dental support organizations in Canada."

Heartland Dental to support the expansion of education, training, supplies and equipment strategic sourcing

As part of this transaction, Heartland Dental and 123Dentist will work together to facilitate the expansion of education and training at 123Dentist for its supported dentists, dental hygienists, dental assistants, and administrative team members. 123Dentist will gain access to Heartland Dental's world-class continuing education programs to expand the capabilities of its supported practices, improve the patient experience, and provide supported dentists the tools to enhance the quality of care. Additionally, Heartland Dental's deep relationships with leading dental manufacturers and distributors will support an expansive, world-class formulary of clinical supply, equipment, and clear aligner options to 123Dentist supported dentists and hygienists.

"This is an important strategic partnership for Heartland Dental and our first outside of the U.S. We have always respected the dentist-led successes of 123Dentist and Altima Dental and believe this is a great opportunity to not only invest in 123Dentist but also bring our full suite of capabilities to Dr. Amin Shivji and his team across all aspects of non-clinical support, anchored by our 25 years of experience," said Pat Bauer, Heartland Dental President and CEO.