- TELUS Corporation (TU, Financial) has proposed a non-binding offer to acquire all remaining shares of TELUS Digital for US$3.40 per share.
- The offer represents a 15% premium over TELUS Digital's closing price on June 11, 2025, and a 23% premium over its 30-day volume weighted average trading price.
- The acquisition aims to enhance TELUS' AI capabilities and SaaS transformation.
TELUS Corporation (TU) has officially submitted a non-binding indication of interest to acquire the remaining shares of TELUS Digital, a business unit known for its digital customer experience solutions, which TELUS does not already own. The proposed price per share is US$3.40, payable in cash, TELUS common shares, or a combination of both, representing a 15% premium on TELUS Digital's NYSE closing price as of June 11, 2025.
Currently, TELUS owns 57.4% of the outstanding shares and controls 86.9% of the voting power. The acquisition seeks to consolidate TELUS' AI capabilities and SaaS transformation efforts across its telecommunications, health, and agriculture segments. This strategic move is part of an effort to streamline operations and eliminate the complexity of maintaining a partially public subsidiary.
The transaction will be structured to maintain TELUS' balance sheet net debt to EBITDA leverage ratio, reflecting the company's commitment to financial discipline while expanding its strategic capabilities. Despite the promising offer, the completion of the acquisition is subject to multiple approvals, including those from TELUS Digital's board, shareholders, and the court.
Barclays is acting as the exclusive financial advisor for the transaction, while Stikeman Elliott LLP and A&O Shearman serve as legal advisors. TELUS is optimistic about concluding the transaction swiftly and efficiently, aiming for closer integration with TELUS Digital to enhance market responsiveness and operational efficiency.
