TELUS Corp is spending $2.3 billion to make this acquisition

Telus Corporation (NYSE: TU) has announced a definitive agreement with LifeWorks Inc., under which it will purchase all outstanding and issued LifeWorks common shares at $33 per share. The offer represents a total of around $2.3 billion-plus net debt assumption of about $600 million. Closing the deal is subject to the regulatory, stock exchange, and LifeWorks shareholders’ approvals.

TELUS to pay for the acquisition combination of its common stock and cash

LifeWorks CEO and President Stephen Liptrap commented:

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The Transaction represents an exciting new chapter for LifeWorks. The combination of TELUS Health and LifeWorks represents an unmatched opportunity to create a leader in employer-focused primary and preventative digital healthcare and mental wellness solutions on a global basis. Together, we will accelerate our shared vision of empowering individuals to live their healthiest lives by unifying the continuum of care through digital-first innovations, as well as our unmatched in-person care.

 The acquisition price will be paid in a mix of cash and common shares, pro-rated so that the total consideration would be payable in 50% cash and 50% TELUS common shares. The $33.00 offer price per LifeWorks common share represents an 89% premium to the volume-weighted average selling price of LifeWorks common shares for the Twenty days of trading ending June 14, 2022. CEO and President of TELUS Darren Entwistle said:

We look forward to welcoming LifeWorks employees and customers into our TELUS Health family. Today’s announcement will enable us to combine the respective skills and capabilities of LifeWorks and TELUS Health, creating a globally leading, end-to-end, digital-first employee preventative and mental health and wellness platform covering more than 50 million lives.

Deal to help LifeWorks advance vision of employer-based healthcare

The transaction is appealing financial and strategically compelling for Telus and its natural choice for TELUS Health. It accelerates LifeWorks’ objective of developing employer-based healthcare and boosting access to quality, active healthcare, including mental well-being for employees. TELUS EVP and CFO Doug French stated:

CEO We have identified readily achievable synergies and anticipate being able to drive significant cross-selling opportunities between our respective organizations, including TELUS International in particular, while driving better health outcomes for the employees and families that we serve around the world.