July 29 (Reuters) – Align Technology said on Wednesday it will add three new independent directors to its board and launch a review of its operations, following talks with activist investor Elliott Investment Management.
Shares of the company were down 4.5% in extended trading.
Align has hired a leading global consulting firm to conduct a comprehensive review of its operations and business model. The company said the review will focus on improving revenue growth and boosting profit margins.
The changes follow discussions with Elliott, one of Align’s largest shareholders.
Marc Steinberg, a partner at Elliott, in a statement called Align a market leader with significant growth potential. “We believe the board enhancements and other actions announced today are important steps toward delivering on this opportunity,” he said.
The medical device company, best known for making Invisalign clear teeth aligners, said it raised its share buyback target for the year to between $400 million and $500 million, up from the earlier target of $200 million, citing confidence in its long-term value.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Shailesh Kuber and Sahal Muhammed)
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