TELUS Corporation Plans Full Acquisition of TELUS Digital for $947 Million

TELUS Corporation has made a non-binding offer to acquire all remaining shares of its digital services subsidiary, TELUS Digital, at $3.40 per share, representing a 15% premium over the recent closing price. Currently owning about 57% of the shares, TELUS aims to gain full control to enhance its artificial intelligence capabilities and SaaS transformation across various business segments, including telecommunications, health, and agriculture. The acquisition reflects TELUS's strategic plan to expand its network infrastructure in Canada, including launching new AI data centers, and to streamline operations by eliminating the complexity of maintaining a partially public subsidiary. TELUS Digital's board plans to form a special committee of independent directors to review the proposal, which is subject to due diligence, shareholder approval, and regulatory compliance in both Canada and the U.S. Barclays is advising TELUS financially on the deal, with legal counsel from Stikeman Elliott LLP and A&O Shearman. This move underscores TELUS's commitment to innovation and growth in the digital and AI space, potentially strengthening its market position and operational efficiency.