Sun Life buys Quebec virtual health care provider Dialogue

Quebec telemedicine specialist Dialogue

Sun Life Financial Inc. has reached a deal to acquire virtual care provider Dialogue for about $277 million.

The insurer says it has entered into an agreement with Montreal-based Dialogue to indirectly acquire all of its outstanding common shares that it doesn't already own for $5.15 each, with Dialogue's executive management maintaining a minority interest.

The two companies initially partnered in 2020, when Sun Life became a minority owner of Dialogue through a deal that involved a $32.7-million equity investment and gave Sun Life rights to acquire additional equity later.

The companies say virtual care is bridging the gap for Canadians, half of whom say they can't schedule a same-day or next-day doctor's appointment.

Dialogue was founded in 2016 with the goal ofconnecting health professionals with Canadians seeking medical advice through an app that allows users to book appointments with doctors and nurses and chat via video.

The product became more important during the pandemic as Canadians sheltered in place to avoid infection and many investors simultaneously pinned their hopes on technology companies.

- This report by The Canadian Press was first published July 26, 2023.