Sun Life Financial, the Toronto-headquartered Canadian financial services company primarily engaged in life insurances, said that it had been in an advanced stage talk to acquire the United States’ second-largest dental insurer DentaQuest in a $2.48 billion buyout deal what in effect would be the 156-year-old Canadian life insurer’s largest deal in more than two decades, illustrating the latest in a string of acquisitions in North American insurance businesses as a plausible pause in growth in the sector was prompting a number of insurers to branch out outside their home market.
On top of that, latest move from Sun Life Financial to acquire US-based DentaQuest would hand out the Canadian life insurer a roughly 33 million members, while a successful takeover deal in effect would lead to an influx of more than $100 million in fresh earnings into Sun Life Financial over the first year of takeover.
Sun Life Insurance, one of the world’s largest life insurers founded back in the 1865s, in tandem, had issued a statement back on Sunday saying that it would be acquiring Boston-based DentaQuest in a $2.48 billion takeover deal as beforementioned.
Sun Life Financial to purchase DentaQuest in a $2.48bn takeover deal
Apart from that, followed by the announcement, a spokeswoman for Sun Life Financial was quoted saying in an interview with a press agency that the latest takeover deal of Sun Life Financial would be the biggest acquisition for the Canadian insurer since 2002, when it had purchased Clarica Life insurance for an upsum of $5.8 billion (C$7.3 billion).
Shares’ prices of Sun Life gained as much as 2.44 per cent to C$66.65 a share following the announcement after rising 1.7 per cent in pre-market trading. In factuality, Sun Life’s move to span its grasp outside home market followed a series of similar acquisitions lately by Canadian insurers, as a limited growth opportunity amid a highly congested market landscape having record level of capitals, had been prodding Canadian insurers to seek for better deals overseas.