SMH Biomaterial produces flex lining material for SomnoMed, as well as device cleaning material SomTabs that was launched in 2014.
The flex material is exclusively manufactured for SomnoDent devices. It is also involved in developing next generation materials that are currently being tested and are expected to be launched in early 2016.
SomnoMed executive chairman Dr. Peter Neustadt said: "The flex lining material has and will give SomnoDent devices a competitive advantage over other devices.
"Proprietary materials are one of the key areas which differentiate oral appliances, especially when it comes to patient comfort, which is directly linked to compliance, and durability, which is an important factor when it comes to insurance reimbursement and comparative health economics."
The deal is expected to be completed in July of this year.
SomnoMed provides diagnostic and treatment solutions for sleep-related breathing disorders, including obstructive sleep apnea, snoring and bruxism.