Sun Life Financial, a leading financial services firm, has announced its acquisition of Dialogue Health Technologies for CAD$277 million. The move aims to expand Sun Life’s presence in the health sector, addressing the growing concerns of Canadians who struggle to secure timely doctor’s appointments.
Under the agreement, Sun Life will purchase all outstanding shares of the virtual healthcare and wellness platform for CAD$5.15 per share, representing a 43% premium over Tuesday’s closing price. With this deal, Dialogue is valued at CAD$365 million, and its executive management will retain a minority stake.
This acquisition builds upon the existing relationship between Sun Life and Dialogue. In early 2020, Sun Life introduced Dialogue’s services to its benefits clients under the name Lumino Health Virtual Care. Additionally, Sun Life recently agreed to license the platform and distribution services to its U.S. members.
Dialogue’s headquarters will remain in Montreal, and it will continue operating as an independent entity within Sun Life Canada. A newly appointed board of directors will provide oversight to ensure the seamless delivery of services to customers and distribution partners.
The transaction is expected to be completed this year and will be financed with cash.