Canada’s second-largest insurer announced on Wednesday that it has entered into an agreement with Montreal-based Dialogue to indirectly acquire most of the outstanding common shares of the telemedicine company it does not currently own for $5.15 per share, or $277-million.
Following the close of the transaction, which is expected later this year after shareholder and court approval, members of Dialogue’s executive management team will retain 3 per cent ownership and Sun Life will own the remaining 97 per cent. The deal gives Dialogue a total equity value of $365-million on a fully diluted basis.
“Together we will empower Canadians with access to the care they need from the convenience of their home,” said Jacques Goulet, president of Sun Life Canada. “We have seen the positive impact Dialogue has had on the lives of Canadians, as well as the role it plays in our broader health ecosystem. Using Dialogue’s platform for appropriate health concerns can help reduce the strain on our healthcare system.
Sun Life rolled out Dialogue’s services to its group benefits clients in March, 2020, under the name Lumino Health Virtual Care and took an initial minority ownership stake in the company. In an additional financing round, the company increased its ownership to 23 per cent.