이 기사는 2019년 10월 02일 08:00 thebell 에 표출된 기사입니다.

South Korean 3D scanner maker Medit Corp. is trying to heighten its charm by putting its flagship product in the forefront.

According to industry sources on September 27, Citi Global Markets, the lead manager of the deal, is currently in a due diligence process along with four shortlisted bidders. Medit, specializing in developing and making 3D dental scanners, put up its majority stake for sale about a month ago.

With more than 90 percent of its revenue coming from overseas, the scanner maker is better known in overseas markets than here in South Korea. It also mainly competes with foreign companies. That explains why the company shortlisted four bidders all composed of global private equity firms. The decision was made based on the company's intention to expand its overseas sales.

The information memorandum (IM) provided to the shortlisted bidders includes not only Medit's financial performance, but also detailed information on its flagship product i500. Concerning the competency of the scanner, the company quoted the Institute of Digital Dentistry (IDD) report where intraoral scanners that were exhibited at the International Dental Show (IDS) held in March were reviewed.

The report evaluated 10 scanners of various makers based on five criteria of scanning speed, scanning flow, scanner size, ease of use and investment cost. "The new Medit i500 has made quite an impact on the CAD/CAM market. It is the newcomer and seems to be holding its own very well compared to other scanners which have dominated market share for some time," the report said in the section devoted to i500.

The scanner also received high scores in scanning speed and scanning flow. "It provides a scan experience that rivals some of the top scanners on the market and for a faction of the price," the report said. It was also assessed as one of the lightest scanners on the market, and Medit's online help services was mentioned as one of core competencies.

Based on the IDD report, i500 seems to have a clear competitive edge in basic performance. However, it appears there is a room for improvement in terms of detailed functions in actual use.

Last year Medit recorded 33 billion won of revenue and 10.3 billion won of operating earnings. The management is expecting more than 30 billion won of operating earnings this year. The transaction price suggested by the company is reportedly around 600 billion won for the entire shares, which could be considered pretty expensive based on earnings before interest, tax, depreciation and amortization (EBITDA) multiple.

Burdened with a higher transaction value, the bidders are expected to carry out due diligence procedures and the management interview more strictly. They will likely focus on competency of the flagship product, growth potential and the need for additional investment.

(By reporter Han Hee-yeon)