TELUS Corporation to Acquire TELUS International (Cda) in a $2.9 Billion Deal

TELUS Corporation (TU) entered a merger agreement on September 2, 2025, to acquire TELUS International (Cda) Inc. (TIXT) (aka TELUS Digital) in a deal valued at $2.9 billion.

Deal Structure:

A purchase price of $4.50 per share will be payable by TELUS, at TELUS Digital shareholders’ election, in $4.50 in cash, 0.273 of a TELUS common share, or a combination of $2.25 in cash and 0.136 of a TELUS common share.

Shareholders electing either stock or a combination of both will be subject to proration such that the aggregate consideration will include no more than 25% in TELUS common shares.

The cash purchase price of $4.50 per share is at a premium of 15.98% from the stock’s last close.

Company Profile:

TELUS International is a global digital services and customer experience company that provides AI, cloud, IT, and business process solutions to clients across industries such as technology, communications, e-commerce, healthcare, and travel.

TELUS is a Canadian telecommunications and technology company that provides mobile, internet, TV, security, healthcare, and digital customer experience solutions to millions of subscribers across Canada.

Deal Details and Timeline:

TELUS, which then owned 60.1% of TELUS International, submitted a non-binding indication of interest to the Board of TELUS International in June. The stock was trading at $2.96 before TELUS made the offer for $3.40 per share, payable in cash, TELUS Corporation common shares, or a combination of both.

TELUS currently holds about 6% of the outstanding subordinate voting shares and 92.5% of the outstanding multiple voting shares of TELUS Digital, together representing roughly 86.9% of the company’s total voting power.

The transaction is backed by Riel B.V., an entity fully owned by EQT funds, which is the largest minority shareholder of TELUS Digital with about 31% of the subordinate voting shares and 7.5% of the multiple voting shares (around 9.1% of total voting rights). EQT has agreed to convert its multiple voting shares into subordinate voting shares before the record date for the Special Meeting, after which it will hold approximately 37.7% of the subordinate voting shares. In addition, all of TELUS Digital’s directors and officers, who together hold about 3.2% of the subordinate voting shares, have also agreed to support the deal.

The deal is expected to close in the fourth quarter of 2025.

TELUS International was advised by BMO Capital Markets and BofA Securities as financial advisors, and by McCarthy Tétrault, Osler, Hoskin & Harcourt, and Paul, Weiss, Rifkind, Wharton & Garrison as legal advisors. TELUS Corporation received financial advice from Barclays and Jefferies, as well as legal counsel from Stikeman Elliott and Allen & Overy Shearman Sterling.

TELUS Corporation is paying 10.05 times the EBITDA for TELUS International (Cda).

Deal Metrics:

More details about this merger and acquisition transaction can be found on the Deal Metrics page here:
Deal Metrics for the acquisition of TELUS International (Cda) Inc. (TIXT) by TELUS Corporation (TU)

The Deal Metrics page for each merger or acquisition includes:

• A chart showcasing the spread history of the merger from announcement to completion or failure.
• Various events that take place during the merger, such as the expiration of the HSR period, regulatory approvals, shareholder votes, etc.
• News and SEC filings.
• A history of deal updates.
• And much more.

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Editor’s Note: Baranjot Kaur contributed to this article