Aflac Incorporated has entered into a definitive agreement to acquire Florida-based Argus Holdings, LLC, and its subsidiary, Argus Dental & Vision, Inc., a benefits organization and national network dental and vision company.
“We are very excited to have Argus join the Aflac family as we move closer to fulfilling our vision of being the number one distributor of benefit solutions to the U.S. workforce,” said Teresa L. White, president of Aflac U.S. “This strategic transaction is a perfect fit as we enhance our core supplemental products with the network dental and vision offerings of Argus to meet the needs of the market.”
Argus was founded by Nicholas M. Kavouklis, D.M.D., in 2006. The company services nearly one million dental and vision members, providing benefits management solutions to Medicare Advantage, Medicaid, and Children's Health Insurance Program (“CHIP”) carriers. In addition, the company offers both group and individual network dental and vision insurance plans to employers and individuals.
Licensed as a pre-paid limited health service organization (“PLHSO”) and a discount plan organization (“DPO”) in Florida, Argus also acts as a third-party administrator (“TPA”) in 48 states and is licensed as a discount health care program operator in Texas.
Aflac said that the transaction will not alter its earnings or capital management outlook for 2019 and is not expected to impact its sales guidance for the year. Moreover, Aflac said that it expects funding of the transaction to come from available liquidity and will not impact the company's policy of holding a minimum of $2 billion in contingent liquidity and capital.
According to Aflac, Argus, with a staff of more than 120 employees, will remain headquartered in Tampa, Florida, under the continued leadership of its president and chief executive officer, Dr. Kavouklis. In addition, Tampa, Florida, will now serve as the home for the Aflac U.S. Network Dental and Vision platform.
“Aflac shares Argus' values of putting the customer first and providing solutions tailored to fit customers' needs,” said Dr. Kavouklis. “We look forward to joining the Aflac team and continuing to provide best-in-class service to our benefit management clients while providing a U.S. platform in support of Aflac's strategy to be a leader in providing network dental and vision offerings to employers.”
Richard L. Williams, Jr., executive vice president and chief distribution officer of Aflac U.S., added, “With Aflac's strong brand and extensive distribution combined with Argus' tremendous administrative capabilities, we are uniquely positioned to fulfill the growing need of network dental and vision insurance plans at the worksite and direct-to-consumer.”
Subject to regulatory approvals and customary closing conditions, the transaction is expected to close in the fourth quarter of 2019.
Sandler O'Neill + Partners, L.P., served as financial advisor and Sidley Austin LLP as legal advisor to Aflac. Raymond James & Associates, Inc., served as financial advisor and Hill Ward Henderson served as legal advisor to Argus.
Learn more: www.aflac.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].