AXA has signed and closed the sale of its Denplan to Simplyhealth Group for GBP115m on a debt free cash free basis.
The total cash proceeds to AXA are GBP151m after a pre-disposal exceptional dividend of GBP30m and a capital release of GBP6m.
AXA acquired Denplan, as part of the Guardian Royal Exchange acquisition in 1999, and has developed the business into the provider of dental payment plans, with an unparalleled client base and distribution network.
AXA’s healthcare business strategy in future will focus on private medical insurance and associated medical services to individuals and businesses.
AXA UK and Ireland Group CEO Paul Evans said that the sale of Denplan allows them to focus their resources on the ongoing development of their extremely successful private healthcare business. They anticipate AXA PPP healthcare will be significantly strengthened by the expected acquisition of Health-on-Line.
AXA expects to complete the acquisition of Health-on-Line during the first quarter of 2012.