BY Fraser Tennant
In a deal which bolsters its business south of the border, Canadian financial services firm Sun Life Financial Inc., via the US arm of its operations, is to acquire oral healthcare company DentaQuest for $2.48bn.
Under the terms of the definitive agreement, the transaction will be financed using a combination of cash and debt and is expected to close in the first half of 2022, subject to receipt of regulatory approvals and satisfaction of customary closing conditions.
Headquartered in Boston and founded in 2001, DentaQuest is the largest provider of Medicaid dental benefits in the US, with growing Medicare Advantage, commercial and US Affordable Care Act (ACA) exchange businesses. Currently DentaQuest has more than 33 million members in 36 states and approximately 2400 employees.
Furthermore, its acquisition by Sun Life will position DentaQuest as a leader in providing government dental benefits, alongside another leading business at Sun Life US, its medical stop-loss business.
“We are excited about the acquisition of DentaQuest and expanding our leadership into the US dental benefits space,” said Kevin Strain, president and chief executive of Sun Life. “DentaQuest is a values-driven industry leader dedicated to improving oral health, with a focus on underserved populations and access to dental care. The addition of DentaQuest is consistent with our strategy to focus on health and group benefits in the US.”
Upon close of the transaction, DentaQuest will become part of the Sun Life US business. Sun Life US currently offers dental benefits through employers for their employee benefits plans and has an extensive national commercial dental network.
“DentaQuest’s combination with Sun Life marks an important next step in our long-term transformation,” said Steve Pollock, president and chief executive of DentaQuest. “A variety of longstanding barriers have created significant unmet oral health needs, which are disproportionately felt by historically marginalised groups. With support from Sun Life, we will be even better positioned to fulfil this critical need.”
Mr Strain concluded: “The addition of DentaQuest supports both our Purpose to help clients achieve lifetime financial security and live healthier lives and our sustainability focus on improving health and wellness outcomes for all.”
News: Sun Life to buy oral healthcare firm DentaQuest for $2.5 billion