Sun Life Financial To Buy DentaQuest For US$2.475 Bln

Sun Life Financial Inc. (SLF,SLF.TO) said that it agreed to acquire DentaQuest for US$2.475 billion or about C$3.1 billion.

The company noted that the transaction will be financed using a combination of cash and debt. The deal is expected to close in the first half of 2022.

Headquartered in Boston and founded in 2001, DentaQuest is a 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 about 2,400 employees.

DentaQuest's minority shareholder, Centerbridge, will also be selling its stake in DentaQuest.

Sun Life Financial expects the acquisition will be immediately accretive. The deal will add about C$0.17 to underlying earnings per share and 42 basis points to underlying return on equity in 2022 on an annualized basis.

In 2024, Sun Life expects the acquisition to add approximately C$0.24 to underlying earnings per share and 50 basis points to underlying return on equity.

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