AXA today announced that it has signed and closed the sale of Denplan to Simplyhealth Group Limited, for a price of £115m (ca. Euro 137m) on a debt free cash free basis. After a pre-disposal exceptional dividend of £30m (ca. Euro 35m) and a capital release of £6m (ca. Euro 7m) total cash proceeds to AXA are £151m (ca. Euro 179m). AXA acquired Denplan, as part of the Guardian Royal Exchange acquisition in 1999, and over the years, has developed the business into the leading provider of dental payment plans, with an unparalleled client base and distribution network.
In 2010, following the sale of the traditional life and pensions business, AXA refocused its UK operations in four core areas – personal and commercial insurance, wealth management and healthcare, all of which are demonstrating strong progress. AXA’s strategy for its healthcare business will in future focus on private medical insurance and associated medical services to individuals and businesses. To enhance this offering, AXA expects to complete the acquisition of Health-on-Line during the first quarter of 2012, providing additional distribution of private medical insurance propositions to individuals, small and medium sized businesses.
Commenting on the transaction, Paul Evans, Group CEO of AXA UK and Ireland said:
“The sale of Denplan allows us to focus our resources on the ongoing development of our extremely successful private healthcare business. We anticipate AXA PPP healthcare will be significantly strengthened by the expected acquisition of Health-on-Line.”
|
