TELUS Corporation on June 16 announced it has entered into an agreement to acquire employee benefits firm, LifeWorks, Inc. The company says it intends to combine TELUS Health and LifeWorks to create an employee mental health and wellness platform and “extend our offerings to customers well beyond Canada,” the company wrote in a statement announcing the acquisition.
TELUS says subject to shareholder, stakeholder and regulatory approvals, it will acquire all issued and outstanding common shares of LifeWorks for $33.00 per LifeWorks common share, making the total offer consideration worth approximately $2.3-billion. The company will also assume net debt of approximately $600-million.
LifeWorks’ employee and family assistance program along with its benefits administration capabilities will be added to TELUS Health’s digital health technologies that include support for mental health, virtual pharmacy, home health monitoring, electronic and collaborative medical records and personal emergency response services. In making the announcement, TELUS also mentions the company’s internet of things (IoT) capabilities that it is developing for health.
Doug French, executive vice president and CFO of TELUS called the transaction financially compelling and strategically attractive to the company. The board of directors at Life Works, meanwhile, based on the recommendation made by a special committee of independent directors, legal and financial advisors, said the transaction is in the best interests of LifeWorks and is fair to its shareholders. It recommended common shareholders vote in favour of the transaction.
The purchase price will be funded with a combination of cash and TELUS common shares.
