Principal Financial Group announced a definitive agreement to acquire Southland Benefit Solutions’ single-state dental network, DentaNet, and to secure renewal rights for a block of group insurance contracts through Canopy Insurance. Both Southland Benefit Solutions and Canopy Insurance are subsidiaries of Collateral Holdings, LLC.
The acquisition significantly strengthens Principal’s presence in Alabama and expands its dental network capabilities across the Southeast. DentaNet currently operates as the largest dental network in Alabama, with approximately 1,500 dental providers serving the state. Once completed, the network will become part of Principal’s portfolio of wholly owned dental networks, joining Principal Preferred Provider Network, Diversified Dental Services, and First Dental Health.
Principal views the expansion as part of its broader strategy to grow its specialty benefits business and deepen its reach among small and midsized employers. The company believes combining its national brand and operational expertise with the localized service model and provider relationships developed by Southland Benefit Solutions and Canopy Insurance will strengthen its competitive position in the region.
The agreement also provides Principal with renewal rights for a portfolio of group insurance contracts through Canopy Insurance, enabling the company to further grow its workplace benefits offering while maintaining continuity for existing customers and providers in the state.
As of December 31, 2025, Principal serves more than 60,000 employer dental plans and provides dental coverage to nearly 2.8 million participants.
Financial advisory services for Principal were provided by Perella Weinberg Partners, while Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel. Sherman & Company served as financial advisor to Collateral Holdings, LLC, and Maynard Nexsen PC served as legal counsel. Terms of the transaction were not disclosed.
Principal Financial Group, headquartered in Des Moines, Iowa, is a global financial services company with approximately 19,000 employees. The firm provides insurance, investment, retirement, and asset management services to more than 75 million customers worldwide.
KEY QUOTES:
“Our specialty benefits business is a critical growth engine for Principal®. Expanding our dental network and group benefits presence in Alabama shows our commitment to continuing above-market growth in the small and midsized business market, and growing our dental business. We look forward to continuing the strong service to both Canopy’s customers and DentaNet’s providers and are excited to welcome them to Principal. We expect this strong dental network to improve dental competitiveness and drive sustained growth. These strategic investments strengthen our presence in the Southeast by pairing our nationally recognized brand and deep expertise with Southland’s and Canopy’s localized service model and provider relationships.”
Kara Hoogensen, Senior Vice President Of Workplace Benefits, Principal Financial Group
“We are proud of what our teams at Southland Benefit Solutions and Canopy Insurance have built for Alabama’s employers and dental community. Principal’s deep commitment to service will carry that legacy forward for Canopy and DentaNet’s customers, while SBS remains fully committed to its TPA customers.”
Jonathan Ratliff, CEO Of Collateral Holdings, LLC
