Telecommunications firm Telus Corp. will buy digital health company LifeWorks Inc., pending approval from regulators and LifeWorks shareholders, the companies announced Thursday (June 16).
The companies valued the cash deal at $2 billion and the assumption by Tellus of $464 million in LifeWorks’ debt. LifeWorks directors have approved the transaction.
Both publicly traded companies are based in Canada. The merger, according to the announcement, will focus on combining the work of the acquiring company’s Telus Health unit and LifeWorks.
“This includes complementing LifeWorks’ international relationships with TELUS International’s proven expertise in digital transformation and client service excellence, as well as their expansive client base and delivery teams spanning 28 countries, to extend our offerings to customers well beyond Canada,” Telus Chief Executive Darren Entwistle said in a prepared statement.
Doug French, executive vice president and chief financial officer of Telus, said in a prepared statement: “We have identified readily achievable synergies and anticipate being able to drive significant cross selling opportunities between our respective organizations, including Telus International in particular, while driving better health outcomes for the employees and families that we serve around the world.”
The deal should produce about $132 million in annual benefits after several years, French added.
Telus, according to the announcement, has revenue of about $13 billion and 17 million “customer connections.”
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