TELUS has announced an agreement to acquire all outstanding voting shares of TELUS Digital not already owned by TELUS for USD $4.50 per share, for a total consideration of USD $539 million.
The transaction is intended to bring closer operational integration between TELUS and TELUS Digital, hoping to enhance artificial intelligence (AI) and software-as-a-service (SaaS) capabilities across various sectors, including telecommunications, health, agriculture, and consumer goods.
TELUS is a communications technology company operating in more than 45 countries and generating over CAD $20 billion in annual revenue, with more than 20 million customer connections through our advanced suite of broadband services for consumers, businesses, and the public sector.
TELUS Digital (Formerly Telus International) focuses on digital solutions (including AI and general IT projects) to international brands. The company's name change in 2024 reflected its switch to integrating CX with AI-fueled projects.
"TELUS Digital's world-leading capabilities in digital customer experience solutions and AI innovations are highly complementary to our strategy at TELUS," said Darren Entwistle, President and CEO of TELUS. "This transaction, once completed, will also accelerate our global growth in products and services to other customers around the world in key verticals, including financial technology, gaming and technology, communications and media, and health, while also delivering significant value for our shareholders."
Transaction details
Under the agreement, shareholders of TELUS Digital can elect to receive either USD $4.50 per share in cash, 0.273 of a TELUS common share, or a combination of USD $2.25 in cash and 0.136 of a TELUS common share. However, shareholders choosing to receive shares or a combination will be subject to proration to ensure that no more than 25% of the total consideration is in TELUS common shares.
The aggregate equity value of TELUS Digital in the transaction is approximately USD $1.3 billion, with the overall transaction value at roughly USD $2.9 billion, based on the total number of subordinate and multiple voting shares outstanding.
This definitive agreement concludes extensive negotiations that began with TELUS' initial non-binding indication of interest at USD $3.40 per share announced on 11 June 2025. The offer price was increased following feedback from minority shareholders and advice from independent financial and legal advisors.
Shareholder and regulatory support
The transaction holds backing from EQT, TELUS Digital's largest minority shareholder, as well as the support of TELUS Digital's directors and officers. EQT, after converting multiple voting shares into subordinate voting shares, will hold approximately 37.7% of the outstanding subordinate voting shares. Both EQT and the directors and officers have entered into agreements to vote in favour of the deal, collectively representing a substantial portion of the shares eligible to vote.
The transaction is to occur through a court-sanctioned plan of arrangement under applicable corporate law. TELUS will fund the acquisition using existing liquidity sources.
If completed, TELUS Digital's subordinate voting shares are expected to be delisted from the New York and Toronto Stock Exchanges, and TELUS Digital will cease to be a reporting issuer in Canada.
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