TELUS completes C$2.3 billion acquisition of LifeWorks setting a new course for employer-focused healthcare
Sep 1, 2022
VANCOUVER, TORONTO – TELUS Corporation ("TELUS") (TSX: T; NYSE: TU) today announced the completion of the previously disclosed acquisition by way of a plan of arrangement (the "Transaction") of LifeWorks Inc. ("LifeWorks") (TSX: LWRK), a world leader in providing digital and in-person solutions that support the total wellbeing of individuals – mental, physical, financial and social, solidifying TELUS Health as one of the largest companies providing digital-first health and wellness services and solutions that empower individuals to live their healthiest lives. TELUS Health is now positioned to support corporate clients across more than 160 countries and covering more than 50 million lives and growing worldwide.
“Today marks another exciting step in our TELUS Health journey, as we welcome the talented LifeWorks team, and the 36 million employees and family members of our business customers who they support, into our TELUS Health family,” said Darren Entwistle, President and CEO of TELUS. “As one of the largest health technology companies globally, our newly expanded TELUS Health organisation will provide employers across the globe with world-leading digital health and wellness solutions for their employees that are convenient, innovative and highly effective. Indeed, through the skill of our combined 10,000 team members and 30,000 independent health practitioners, and leveraging the combination of TELUS’ strong digital and data analytics capabilities with our client service excellence, we will dramatically improve remedial, preventative and mental health outcomes. In turn, this will support the well-being of over 50 million individuals and growing around the world. Importantly, LifeWorks’ domestic and global operations will be bolstered by our TELUS International team through their proven expertise in digital transformation and client service excellence. Moreover, we have an important opportunity to leverage our expansive TELUS and TELUS International footprint and client base spanning 32 countries, as well as the tremendous skill of our 70,000 international team members, to amplify the distribution reach, effectiveness and efficiency of our digital health services on a global basis. I look forward to the incredible opportunities before us to progress our goal of leveraging our globally leading technology, in combination with our social purpose-driven, client-centric culture and brand, to create better health experiences across the entire health and wellness ecosystem.”
Benefits of the transaction:
Establishes a compelling offering for employers to provide the best wellness experience for their employees in order to enhance talent acquisition and retention, while improving their business performance
Provides complementary end-to-end solutions supported by TELUS’ robust infrastructure of leading networks and best-in-class customer experience, including TELUS International’s proven expertise in digital transformation and client service excellence
Creates a global digital health and wellness leader, providing access to high quality, proactive healthcare and mental wellness for employees by unifying digital-first solutions across the care continuum
Enables continued innovation and market share growth through the solid financial backing of TELUS, along with significant cross selling synergies between our respective organizations, including TELUS International
Given the timing of the transaction relative to TELUS’ September 30th quarter-end, the financial impact on third quarter results is not expected to be material. TELUS will provide an update on the annual impact with the release of its third quarter financial and operational results in November.
TELUS Health’s Chief Operating Officer, Michael Dingle, will oversee the transition and lead the integration of LifeWorks into the TELUS Health family. Michael’s deep industry expertise and proven track record of creating team, client and shareholder value will ensure the smooth transition of LifeWorks team members and clients.
“TELUS Health and LifeWorks will work closely together to define the strategy and plan to thoughtfully integrate the teams with minimal disruption to internal and external stakeholders,” said Michael Dingle. “We are excited to come together as one team as we begin this journey to raise the bar on employee health and wellness for organizations around the world.”
With the completion of the transaction, LifeWorks has become a wholly owned subsidiary of TELUS, and will continue to execute on its growth strategy, amplified by TELUS Health’s existing suite of advanced digital health technologies. LifeWorks brings world leading digital and in-person solutions that support the total wellbeing of individuals – mental, physical, financial and social. Also a trusted leader in mental health and wellbeing, LifeWorks delivers a personalized continuum of care that helps clients improve the lives of their people and by doing so, improves their business. As a part of the TELUS family, and by combining strengths with TELUS Health, together all clients globally have an opportunity to improve the wellbeing of their people, improve workforce engagement and productivity, which in turn improves the performance of their organizations.
"We are excited to be joining the TELUS Health team to further advance our market-leading health and wellness offerings on a global scale to better serve our clients and their people," said Stephen Liptrap, President and CEO of LifeWorks. "Combining our international client relationships with TELUS' proven expertise in digital transformation and service excellence will unlock significant cross-selling opportunities and deliver value to all stakeholders."
Pursuant to the Transaction, TELUS has acquired all of the issued and outstanding common shares of LifeWorks for C$33.00 per LifeWorks common share, representing total consideration of approximately C$2.3 billion, in addition to the assumption of net debt of approximately C$600 million. The aggregate consideration payable under the Transaction was paid approximately C$1.033 billion in cash and through the issuance of approximately 33.3 million TELUS common shares. The TELUS common shares issued to LifeWorks common shareholders in connection with the Transaction were issued based on a reference price of $31.01 per TELUS common share, representing the volume weighted average price of the TELUS common shares for the 20 trading days ending June 14, 2022. Full details of the Transaction are set out in the management information circular of LifeWorks dated July 6, 2022, a copy of which can be found under LifeWorks' profile on SEDAR at www.sedar.com.
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