TELUS to acquire Lifeworks for $2.9B: Here's what you must know

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TELUS to acquire Lifeworks for $2.9B: Here's what you must know

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TELUS Lifeworks deal
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  • Under the deal, TELUS will acquire all shares of Lifeworks for C$ 33 per unit.
  • In Q1 2022, TELUS’ operating revenue increased to C$ 4,256 million.
  • The acquisition deal between TELUS and Lifeworks will be subjected to several approvals.

TELUS Corporation (TSX:T) announced Thursday that it has agreed to acquire Lifeworks, Inc. (TSX:LWRK). This move will help the organization expand its presence healthcare and corporate sectors.

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Employee and family assistance plans, health, wellness, and absence management are some of the services provided by LifeWorks, previously known as Morneau Shepell.

Under the deal, TELUS will acquire all shares of Lifeworks for C$ 33 per unit. TELUS is acquiring the company for C$ 2.3 billion, excluding the assumption of net debt of around C$ 600 million.

The acquisition deal would be subjected to regulatory, court, stock exchange, and LifeWorks shareholders' approvals.

TELUS-Lifeworks Deal: Key Details

According to the acquisition deal, the shareholders of Lifeworks will receive C$ 33 per LWRK share or 1.0642 TELUS shares per LifeWorks share. Also, there would be a third option of receiving C$ 16.5 per share in cash and 0.5321 TELUS share per LWRK share.

TELUS Health's vision of employer-based healthcare could be accelerated by this acquisition, which unifies digital solutions across the care continuum, expanding access to high-quality, proactive healthcare and mental wellbeing for employees.

TELUS Health and LifeWorks are believed to have similar principles. This deal will allow them to work together to deploy next-generation technologies for employees worldwide quickly.

There has been a significant change in what is required to assist employers in meeting the changing health and wellness needs of their employees and their families. TELUS could benefit from increasing awareness around mental health.

TELUS stock

Bottom line

The financial performance of TELUS Corporation has improved, and in Q1 2022, its operating revenue increased to C$ 4,256 million from C$ 4,022 million, representing a year-over-year (YoY) increase of 5.8 per cent.

Meanwhile, TELUS' net income jumped to C$ 404 million in Q1 2022, reflecting an increase of 21.3 per cent YoY. Notably, the free cash flow increased to C$ 415 million in the same period.

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Please note, the above content constitutes a very preliminary observation or view based on digital trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.


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