to acquire DentaQuest, a leader in dental benefits in US - Strategic fit for Sun Life in attractive dental segments, more than doubling its U.S. employee benefits revenues and complementing its existing portfolio as a leader in health and group benefits
- Positions Sun Life as a leading dental benefits provider
- DentaQuest is the second largest provider of dental benefits in the United States, serving more than 33 million members
- Leading manager and provider of Medicaid dental benefits in the U.S. with growing Medicare Advantage and commercial businesses
- Immediately accretive to both underlying EPS and ROE; highly cash generative
- Conference call to be held on Monday, October 4, 2021, at 8 a.m. ET, details below
WELLESLEY, Mass., BOSTON and TORONTO, Oct. 3, 2021 /CNW/ - Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF), through its U.S. business, has entered into a definitive agreement to acquire DentaQuest, for US$2.475 billion (approximately C$3.1 billion). Headquartered in Boston and founded in 2001, DentaQuest is the largest provider of Medicaid dental benefits in the U.S. with growing Medicare Advantage, commercial and U.S. Affordable Care Act (ACA) exchange businesses. Currently DentaQuest has more than 33 million members in 36 states and approximately 2,400 employees.
Upon close of the transaction, DentaQuest will become part of the Sun Life U.S. business. Sun Life U.S. currently offers dental benefits through employers for their employee benefits plans and has an extensive national commercial dental network. The acquisition of DentaQuest aligns to Sun Life's business strategy of being a leader in health and group benefits.
"We're excited about the acquisition of DentaQuest and expanding our leadership into the U.S. dental benefits space," said Kevin Strain, President and CEO 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 U.S. More importantly, it 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."
Upon close, DentaQuest will more than double the size of Sun Life's U.S. employee benefits business by revenues and will position it as a leader in providing government dental benefits, alongside another leading business at Sun Life U.S., its medical stop-loss business.
https://www.newswire.ca/news-releases/sun-life-to-acquire-dentaquest-a-leader-in-dental-benefits-in-the-united-states-835410600.html