The acquisition of Versant Health is expected to put MetLife among the top three players in the managed vision care industry in the US
MetLife has agreed to acquire vision care company Versant Health for $1.67bn from a consortium of investors that includes Centerbridge Partners and FFL Partners.
Versant Health owns vision care solutions providers Davis Vision and Superior Vision.
Its acquisition is expected to help MetLife become one of the top three players in the US managed vision care industry. Besides, the company anticipates the deal to further boost its position among the top providers of group benefits in the US.
Versant Health expected to speed up revenue growth for MetLife
MetLife president and CEO Michel Khalaf said: “We are pleased to welcome Versant Health, a well-run and well-respected leader in vision care, to the MetLife family. In Versant, we have found the right strategic fit with our group benefits business.
“We expect this combination to accelerate revenue growth while delivering greater value for our customers and shareholders.”
As per MetLife, the potential of the US managed vision care market is highly significant with over 90% of employees keen on obtaining vision insurance through their employer.
Upon closing of the deal, MetLife will gain access to around 35 million members of Versant Health. Furthermore, the existing customers of the life insurance major will get access to the vast provider network of Versant Health, which is claimed to be among the largest in the industry.
MetLife US business president Ramy Tadros said: “We are confident this acquisition will make our market-leading group benefits business even more attractive.
“The addition of the strong Davis Vision and Superior Vision brands will immediately establish MetLife as a leader in managed vision care. We look forward to offering our customers the exceptional member experiences that Versant provides.”
MetLife is targeting to close the deal in the fourth quarter of this year, once it obtains regulatory approvals and satisfies other customary closing conditions.
Recently, the US life insurance group completed the sale of MetLife Limited and Metropolitan Life Insurance Company of Hong Kong to pan-Asian life insurer FWD Group.