Telus Corp Plans Full Acquisition of Telus Digital to Boost AI and Digital Services
- Telus Corp plans to acquire full ownership of Telus Digital at $3.40 per share, reflecting significant share price premiums.
- The acquisition aims to enhance operational integration and AI capabilities across Telus's services in various sectors.
- Telus also seeks to fully acquire Telus International, consolidating its digital services and improving client offerings.
Telus Corporation's Strategic Move to Acquire Full Ownership of Telus Digital
Telus Corporation announces a non-binding indication of interest to acquire full ownership of Telus Digital, aiming to purchase the remaining outstanding shares for $3.40 each. This proposal reflects a 15% premium over the company's closing share price on June 11, 2025, and a 23% premium based on its 30-day volume-weighted average trading price. Currently, Telus holds approximately 57.4% of Telus Digital's shares, predominantly consisting of multiple voting shares. The strategy behind this acquisition underscores Telus's commitment to enhancing operational integration and advancing its capabilities in artificial intelligence (AI) and software as a service (SaaS) across diverse sectors, including telecommunications, health, and agriculture.
By fully owning Telus Digital, Telus aims to streamline decision-making processes and foster innovation within its digital services. The acquisition is part of a broader initiative to consolidate its digital units, ensuring that AI capabilities are more effectively integrated into its operations. As the telecommunications landscape continues to evolve, Telus recognizes the necessity of adapting its offerings to meet rising demand for sophisticated digital solutions. President and CEO Darren Entwistle emphasizes that this move is pivotal for driving growth, operational efficiency, and maintaining high standards in customer service and community engagement.
The proposed acquisition is subject to due diligence, board approval, and customary closing conditions. Telus anticipates financing the transaction in a manner that preserves a balanced net debt to EBITDA ratio while adhering to deleveraging priorities. Although no definitive agreement has been finalized, Telus and its advisors, including Barclays and Stikeman Elliott LLP, are prepared to collaborate with Telus Digital's board to facilitate the transaction, reflecting a proactive approach to harnessing AI capabilities for future growth.
In addition to acquiring Telus Digital, Telus Corporation also proposes to fully acquire Telus International, valuing the company at approximately US$940 million. This move, following the spin-off of Telus International in 2021, further consolidates Telus's digital services under one umbrella. By offering US$3.40 per share in cash, shares, or a combination of both for the remaining shares, Telus aims to enhance its ability to serve global clients in IT and customer service.
Telus's strategic focus on integrating its digital units aligns with the growing importance of AI in enhancing customer experiences and driving operational efficiency within the telecommunications sector. This initiative not only represents a significant step for Telus but also positions the company to remain competitive in a rapidly evolving digital landscape.