Sun Life is investing $32.7 million for a minority stake in Dialogue. A number of existing investors, including the Caisse de dépôt et placement du Québec and Portag3 Ventures, participated in the round. (The Logic)
Talking point: The investment comes as Canadians are increasingly turning to virtual health care due to the pandemic. Sun Life has the right to exercise additional options under the deal, but will remain a minority shareholder even if it does. In May, The Logic reported that Dialogue had quadrupled its workforce from 250 to 1,000 during the pandemic and was looking to add an additional 150 staff. The fresh financing will be used for acquisitions as well as an expansion into virtual treatments for chronic diseases and women’s health services. The Canadian telehealth market is growing increasingly competitive. Telus and Morneau Shepell have made deals with provincial governments during the pandemic to provide services. Other firms, like OnCall Health and Well Health, are also seeking to carve out more of the market.