Sun Life Financial, through its US business, has acquired Boston-based dental benefits provider DentaQuest for US$2.475 billion (approximately CA$3.1 billion).
Founded in 2001, DentaQuest is the second largest provider of dental benefits in the US, serving over 33 million members in 36 states. It is also a leading provider of Medicaid dental benefits, with growing Medicare Advantage, commercial and US Affordable Care Act (ACA) exchange businesses.
Once the transaction closes, DentaQuest will become part of Sun Life’s US business. Sun Life US currently provides dental benefits through employers for their employee benefits plans and has an extensive national commercial dental network.
“We’re excited about the acquisition of DentaQuest and expanding our leadership into the US dental benefits space,” said Sun Life president and CEO Kevin Strain. “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.”
A company release noted that following the transaction, DentaQuest will more than double Sun Life’s US employee benefits business by revenues. It will also position Sun Life as a leader in offering government dental benefits.
“DentaQuest is a great organization that provides high-quality dental care and insurance benefits to tens of millions of people in the United States, with an emphasis on government programs, a fast-growing segment that now rivals the size of the employee benefits space,” said Sun Life US president Dan Fishbein, M.D.
“DentaQuest’s combination with Sun Life marks an important next step in our long-term transformation that will enhance and broaden our existing capabilities,” commented DentaQuest president and CEO Steve Pollock.
Pollock stated that thanks to support from Sun Life, the DentaQuest team will be better positioned to serve the needs of historically marginalized groups with “significant unmet oral health needs.”
