The Principal Financial Group has signed a strategic agreement to acquire First Dental Health, pursuant to which the latter will become a member of the former.

The US diversified conglomerate said that the acquisition of First Dental Health will boost its footing in dental health business, as First Dental Health includes over 11,000 credentialed dentists with locations in California, Arizona and Nevada.

The Principal Financial Group senior vice president Deanna Strable said this acquisition furthers the company’s national dental network strategy, focused on owning and operating dental preferred provider networks.

"By owning dental networks, our customers receive deeper discounts and broad access to local dentists. First Dental Health has a strong regional presence, which enables us to continue to enhance our dental business in California and surrounding areas," Strable added.

"We will ensure a seamless transition for our customers and business partners with the same great service and valuable products designed to help customers get the most out of their benefit dollars."

The transaction details have not been revealed by the firms. It closing also depends on the regulatory approval and customary closing conditions, and is anticipated to happen in October 2012.

The Principal Financial Group offers retirement services, insurance solutions and asset management to businesses, individuals and institutional clients, and serves more than 27,000 employers across all states, plus the District of Columbia.