Telus Plans Reacquisition of Telus Digital for $941 Million

TELUS Corporation has submitted a non-binding proposal to acquire all remaining shares of TELUS Digital, formerly TELUS International, at $3.40 per share, representing a 15% premium over the recent closing price. The move aims to re-integrate TELUS Digital, which was spun off in 2021, to enhance artificial intelligence capabilities and software-as-a-service transformations within TELUS, enabling closer operational proximity between the two companies. TELUS currently owns a majority of TELUS Digital shares, holding 57.4% of all outstanding shares and 86.9% of voting power. TELUS Digital's board is set to form a special committee to review and evaluate the proposal, which remains subject to due diligence, negotiation, and shareholder approvals. The proposed re-merger has led to a significant increase in TELUS Digital's share price, reflecting investor interest in the consolidation strategy to drive innovation and capture synergies. While the acquisition would result in a substantial loss for TELUS when considering the prior spin-off and sale, it signals a strategic shift toward consolidation in the telecom and digital services sector.