Singapore-listed Medi Lifestyle has agreed to acquire a 60% stake in E2AI, the dental AI platform of private dental healthcare provider Q & M Dental Group, according to an announcement.
Medi Lifestyle signed a non-binding term sheet to pay S$6.76 million (about $5.3 million) entirely through the issuance of 138 million new ordinary shares at $0.049 apiece, per the announcement.
The transaction implies a valuation of about S$11.3 million for EM2AI.
EM2AI is a Singapore-based medical technology company that uses AI to support dental diagnostics and treatment planning.
Its platform analyses dental X-rays, automates dental charting and generates structured information for dentists.
Its AI-powered X-ray detection and automated dental charting systems were deployed across Q & M Dental’s Singapore clinics in April 2024.
Medi Lifestyle said the acquisition would give it an entry into technology-enabled healthcare and provide EM2AI with support to expand beyond the Q & M network into other dental groups in Singapore and selected Southeast Asian markets.
Under the proposed terms, Medi Lifestyle will raise or procure at least S$30 million within two years after completing the acquisition to support EM2AI’s operations and regional expansion.
The parties also plan to include net profit targets of at least S$1 million in fiscal 2027, S$1.5 million in 2028, and S$2.5 million in 2029.
“EM2AI gives Medi Lifestyle a clear entry point into technology-enabled healthcare,” Medi Lifestyle executive director and CEO Tan Lee Seng said.
The transaction remains subject to due diligence, regulatory and other approvals, and the signing of definitive agreements. Neither party is required to proceed until binding agreements are executed, according to the announcement.
The proposed divestment follows Q & M’s agreement in July to acquire an effective 51% stake in Thailand’s Deezy Q & M Dental Group for 994.5 million baht.
That acquisition will give Q & M control of 33 dental clinics across Bangkok and northeastern Thailand, expanding its operations beyond Singapore, China and Malaysia.
Deezy, founded in 2017, has more than 400 dentists and has served over 400,000 patients.
