TELUS Corporation Proposes Acquisition of TELUS Digital for Strategic Growth and Operational Efficiency

TELUS Corporation Proposes Acquisition of TELUS Digital

On June 12, 2025, TELUS Corporation announced a strategic move by submitting a non-binding indication of interest (IOI) to acquire full ownership of TELUS Digital. The proposed transaction involves acquiring all subordinate voting shares and multiple voting shares that are not already owned by TELUS, with a suggested purchase price of $3.40 per share. Notably, this price represents a 15% premium compared to TELUS Digital's closing share price on the New York Stock Exchange on June 11, 2025.

The proposed acquisition is not just a financial maneuver; it signifies TELUS's commitment to enhancing its operational efficiency and market responsiveness. According to TELUS President and CEO Darren Entwistle, this acquisition is grounded in the belief that a tighter operational integration between TELUS and TELUS Digital will facilitate improved AI capabilities and accelerate SaaS transformations across various sectors, including telecommunications, health, agriculture, and consumer goods.

With TELUS's ownership of approximately 92.5% of the outstanding multiple voting shares and 6.1% of the subordinate voting shares, the company is well-placed to ensure a smooth acquisition process. However, it's essential to note that this IOI is non-binding and subject to numerous conditions including due diligence, transaction structure negotiations, and board approvals. TELUS seeks to work collaboratively with TELUS Digital's board to further evaluate the proposal and engage independent directors to assess the viability of the transaction.

The acquisition would position TELUS as a more formidable player in the digital landscape, enhancing its capabilities to leverage advancements in technology for operational excellence. With its established history of effective service and community engagement, TELUS Digital is seen as a key asset in delivering innovative solutions and substantial benefits to clients and shareholders alike. Furthermore, any financial dealings surrounding the acquisition will be meticulously structured to ensure neutrality to TELUS's balance sheet net debt-to-EBITDA leverage ratio, a clear indication of TELUS's dedication to maintaining financial health while pursuing growth.

These developments are expected to generate significant benefits not only for TELUS Digital but also for its customers and investors. However, the road to finalizing this acquisition remains reliant on completing due diligence and obtaining requisite board and regulatory approvals. Until then, TELUS has no additional intentions regarding its investment in TELUS Digital beyond the proposed acquisition plans.

As TELUS continues to evolve within the telecommunications domain and expand its reach across various sectors, this proposed acquisition is a strategic step towards consolidating its market position and enhancing shareholder value. The company's focus on harmonizing operations between TELUS and TELUS Digital emphasizes its ambition to create future-proof solutions that adapt to changing market dynamics.

In anticipation of the next steps, TELUS has enlisted Barclays as the exclusive financial advisor for this acquisition effort, alongside legal advisors Stikeman Elliott LLP and AO Shearman. These partnerships will facilitate a comprehensive approach to negotiating terms and strategizing the successful transition post-acquisition.

While the announcement has sparked interest among industry watchers, potential investors are advised to remain cautious as TELUS has indicated no certainties regarding the completion or terms of the acquisition at this stage. Stakeholders are encouraged to monitor developments closely as the proposed transaction progresses through the necessary evaluation processes.

In summary, TELUS Corporation's pursuit of TELUS Digital represents not only a potential financial boon for both entities but also a transformational opportunity that aims to harness technological advances and improve the overall customer experience across various sectors. As the landscape of digital technology continues to evolve, strategic decisions like this may play a pivotal role in shaping the future operational footprint of TELUS and its subsidiaries.