Telus moves to reintegrate Telus Digital in $539Mn deal
VANCOUVER, CANADA — Telus Corporation (Telus) has announced a definitive agreement to acquire full ownership of Telus International (Telus Digital), the digital services subsidiary it spun off just four years ago.
The telecom giant will pay US$539 million for the remaining shares, a move executives say is crucial to accelerating its artificial intelligence and software transformation strategy.
Strategic reintegration to boost AI and SaaS shift
According to Chief Executive Officer (CEO) Darren Entwistle, the rationale behind this acquisition is that a greater operational proximity is required to facilitate the achievement of more advanced AI capabilities and Software-as-a-Service (SaaS) transformation across every line of our business.
“The transaction is fully reflective of our belief that closer operational proximity between Telus and Telus Digital will enable enhanced AI capabilities and SaaS transformation across all lines of our business,” he said in the company’s press release.
The move suggests that the parent company considers the customer experience (CX) solutions and AI innovations of its unit to be of significant importance, especially in core verticals like health, fintech, and gaming.
According to The Canadian Express, this decision represents a significant shift from the 2021 strategy that saw Telus go public with an initial offering of US$25 per share.
The reintegration is designed to streamline operations and directly harness Telus Digital‘s expertise for the parent company’s digital overhaul.
Shareholder vote required for deal approval
The finalized deal comes with a substantially increased financial offer, highlighting Telus’s determination to secure the agreement after initial resistance. According to RBC Capital Markets analyst Drew McReynolds, the new US$4.50 per share price tag represents an approximate US$200 million increase over Telus’ previous offer of US$3.40 per share, which was proposed earlier this year.
This sweetened proposal is likely aimed at winning over minority shareholders who may have been dissatisfied with the initial bid.
Telus has already secured a key advantage for the vote, with the support of Riel B.V., the largest minority shareholder, which holds 31% of the subordinate voting shares. The transaction values Telus International’s total equity at approximately US$1.3 billion and still requires approval from a two-thirds majority of all shareholders.
It must also pass a separate majority vote from the minority shareholders, excluding Telus and its affiliates, who own 6% of the subordinate voting shares and a controlling 92.5% of the multiple voting shares.
“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,” Entwistle noted.
Telus recently ranked #81 in the OA500 2025, an objective index of the world’s top 500 outsourcing companies.
