VANCOUVER — Telus Corp. has signed a deal to acquire the shares of Telus International (Cda) Inc. it does not already own for a total of US$539 million, reversing its move to spin off the business in 2021.
Under the agreement, Telus said Tuesday it will pay US$4.50 per share for the company which operates under the name Telus Digital and provides IT services and customer service to global clients.
The purchase price is payable in cash or Telus shares with a limit on the number of shares available under the offer.
Telus International went public in 2021 with an initial public offering of US$25 per share. The shares closed at US$3.88 on the New York Stock Exchange on Friday.
Telus chief executive Darren Entwistle said Telus Digital's customer experience solutions and artificial intelligence innovations are highly complementary to the strategy at Telus.
"The transaction is fully reflective of our belief that closer operational proximity between Telus and Telus Digital will enable enhanced AI capabilities and SaaS (software as a service) transformation across all lines of our business," Entwistle said in statement.
"Furthermore, 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."
The agreement comes after Telus proposed earlier this year to buy the shares in Telus Digital it did not already own for US$3.40 per share in cash or Telus shares or a combination of both.
RBC analyst Drew McReynolds said the deal announced Tuesday represents an approximate $200 million increase in the amount to be paid by Telus compared with its previous offer in June.
"We continue to believe the proposed acquisition is consistent with Telus management's public commentary over the past 18 months around the importance of Telus Digital to the digital transformation of Telus, including bringing enhanced AI and SaaS capabilities across the organization," he said in a note.
Telus said the offer is supported by Riel B.V., Telus Digital's largest minority shareholder with 31 per cent of the outstanding subordinate voting shares and 7.5 per cent of the multiple voting shares.
The deal requires approval of a two-thirds majority vote by holders of subordinate voting shares and multiple voting shares of Telus Digital, voting as a single class.
It also needs approval by a simple majority of the votes cast by holders of the subordinate voting shares, excluding Telus and its directors, senior officers and affiliates.
The transaction values Telus Digital's equity at about US$1.3 billion, based on 114.3 million outstanding subordinate voting shares and 164.4 million outstanding multiple voting shares. Telus owns six per cent of the subordinate voting shares and 92.5 per cent the multiple voting shares.
This report by The Canadian Press was first published Sept. 2, 2025.
Companies in this story: (TSX:T, TSX:TIXT)
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