Canada’s Sun Life has signed a definitive agreement through its US arm to acquire DentaQuest for $2.47bn.
Through the acquisition, Sun Life seeks to become a ‘leading’ dental benefits provider in the US and double its US employee benefits revenues.
DentaQuest, which serves over 33 million customers, is the second largest provider of dental benefits in the country.
Furthermore, DentaQuest manages and provides Medicaid dental benefits and has growing Medicare Advantage and commercial businesses.
Upon completion, DentaQuest will become part of Sun Life US, which offers dental benefits through employers for their employee benefits plans.
Sun Life president and CEO Kevin Strain said: “We are excited about the acquisition of DentaQuest and expanding our leadership into the US dental benefits space. The addition of DentaQuest is consistent with our strategy to focus on health and group benefits in the US.”
Steve Pollock president and CEO DentaQuest said: “DentaQuest’s combination with Sun Life marks an important next step in our long-term transformation that will enhance and broaden our existing capabilities. With support from Sun Life, we will be even better positioned to fulfil this critical need, and we look forward to partnering with them as we begin this exciting next chapter.”
Additionally, Sun Life revealed that it will also be buying Centerbridge’s minority stake in DentaQuest.
Sun Life US MD Dan Fishbein president said: “DentaQuest brings Sun Life a leading dental business, and we plan to build on DentaQuest’s strength in dental programs along with Sun Life’s national commercial provider network and distribution team.”
Earlier, Sun Life selected Amazon Web Services (AWS) as its long-term strategic cloud technology provider to support its digital transformation.