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Sebring Completes Two Significant Mergers of Dental Practice Management Companies and $16 million Financing

May 2, 2013

Company Expands into Growing Healthcare Sector with Plans to Maximize Efficiencies with its Back Office Software Applications

SARASOTA, Fla., May 2, 2013 /PRNewswire/ — Sebring Software, Inc. (“Sebring”) (OTC: SMXI), a Dental Practice Management company (DPM), today announced the closing of two concurrent mergers; one, Orthodontic Specialists Management, LLC “OSM,” which manages orthodontic dental practices across Florida and two, Absolute Aesthetic & Restorative and Image Dentistry of Glendale “AAR” which operates dental practices based in Arizona. Sebring also closed on a $16.0 million financing from a lender group led by MidMarket Capital Partners, LLC.

AAR and OSM produced combined 2012 un-audited annual revenues of approximately $18.0 million. The transactions are a part of the company’s strategy to enter the healthcare market through mergers of DPM companies and certain dental practices. Both AAR and OSM will bring strategic DPM assets to Sebring, and provide a platform for the company to launch its unique software applications to the healthcare industry.

“Owning assets in the DPM space allows Sebring to enter the dental sector in two large, growing and profitable markets,” commented Leif Andersen, President and Chief Executive Officer of Sebring Software. “As we move forward with our growth strategy, we plan to integrate our software applications in all practices to provide cost efficiencies to the back office and further increase profitability. We will continue to search for strategic mergers in the healthcare sector, and I look forward to updating our shareholders as we advance through our expansion.”

To close the transactions, Sebring raised $16.0 million from a group of lenders led by MidMarket Capital Partners. Under the terms of the loan agreement, the lenders agreed to loan the company $16.0 million in two separate tranches; $11.0 million and $5.0 million. Sebring issued an 8K on the transaction on May 1, 2013, which can be found at www.sec.gov.

About Mergers:

Orthodontic Specialists Management (OSM): Approximate 2012 Revenue of $16.0M
Founded by Dr. Alan D. Shoopak in 2005, OSM, LLC manages thirty-one state-of-the-art orthodontic practices located throughout the State of Florida. The group is comprised of fifteen doctors and has a centralized management office located in Clearwater, FL, which provides support to all affiliate practices. For more information, please visit: www.florida4braces.com.

Absolute Aesthetic & Restorative (AAR): Approximate 2012 Revenue of $2.0M
Founded in 2010 by Dr. Byron Larsen and Dr. Mitch Ellingson, AAR operates two cosmetic and family practices located in the greater Phoenix Valley. Dr. Larsen is the “Official Team Dentist” of the Phoenix Coyotes NHL team and the Arizona Cardinals NFL team. AAR holds unique industry certifications that allow the practices to offer highly specialized services to its patients. For more information, please visit www.absolutedentistryaz.com and www.image-dentistry.com.

About Sebring Software: Sebring Software, Inc. a Nevada Corporation (“Sebring”) acquired Sumotext, Inc., a publicly traded company, in October 2010. Sebring is in the software business and is focused on the Dental Practice Management industry (“DPM”). DPM companies combine acquisition and organic growth to boost revenues while instilling best practice management infrastructure to increase the dental practices’ profitability. Capital and cost efficiency have driven the dental services industry to join DPM companies rather than remain as sole practitioners. Most DPMs and dental practices use different software packages. Sebring plans to use software solutions to substantially reduce the cost of DPMs data entry.

Safe Harbor: This release contains statements, which may constitute “forward-looking statements” within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. Prospective investors are cautioned that forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those contemplated by such forward-looking statements. Important factors known to management that could cause actual results to differ materially from those in forward-looking statements include fluctuation of operating results, ability to compete successfully, and ability to complete before-mentioned transactions. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events, or changes to future operating results.

Investor Contact:
Jeff Ramson
Founder & CEO
ProActive Capital Group, LLC
(646)-863-6341

SOURCE Sebring Software, Inc.


Source: PR Newswire