SANTA CLARA, Calif. (AP) -- Dental products company Align Technology Inc. said Monday it is settling a patent dispute with a Danaher Corp. unit through a cash-and-stock deal worth about $90 million.
In June, a jury ruled that Align's Invisalign teeth-straightening system infringed on a patent held by Danaher Corp. At the time, Align said it would seek an appeal. Washington-based Danaher Corp. makes Sears' Craftsman tools, bar codes and medical products.
Under the settlement deal, Align will make a cash payment of about $13 million to Ormco, a Danaher unit, and issue about 7.6 million shares of common stock to Danaher Corp. The stock, valued at about $77 million as of Friday, will give Danaher a 10 percent ownership stake in Align.
The companies also agreed to collaborate over the next seven years to develop and sell an orthodontic product that combines Invisalign with Ormco's Insignia orthodontic products. Each company will retain ownership of pre-existing intellectual property, and will be granted intellectual property licenses in their respective field for jointly developed combination products.
Shares of Align added $1.84, or 18.2 percent, to $11.94 in morning trading, while Danaher shares fell $1.40, or 2.3 percent, to $58.69.