Telus Hikes Offer, Buys Out Telus Digital in $539 Million US Deal

Telus is set to take full control of Telus Digital, buying all remaining shares it doesn’t already own for $4.50 US per share, valuing the deal at about $539 million US ($743.4 million CAD).

The move gives Telus closer integration with Telus Digital to expand AI and cloud-based software across telecom, health, agriculture, and consumer goods.

This follows Telus’ June 12 offer of $3.40 US per share, which at the time was about 15% above Telus Digital’s stock price. Back then, Telus owned around 57% of the company and said the buyout would make it easier to roll out AI features across its businesses. Analysts suggested Telus might need to raise its offer to win shareholder approval — which it now has.

“Telus Digital’s world-leading capabilities in digital customer experience solutions and AI innovations are highly complementary to our strategy at Telus. The transaction is fully reflective of our belief that closer operational proximity between Telus and Telus Digital will enable enhanced AI capabilities and SaaS transformation across all lines of our business,” said Darren Entwistle, Telus president and CEO.

Shareholders can pick how they get paid: either $4.50 US in cash per share, or a fraction of a Telus share (0.273), or half in cash ($2.25 US) and half in shares (0.136). But overall, Telus will limit stock payments to no more than 25% of the deal.

The special committee reviewing the deal said it was fair and in the best interests of minority shareholders. Josh Blair, co-chair of the committee, explained, “Following careful consideration of a wide range of factors and negotiations with Telus that resulted in an increase in the price first offered… the Special Committee determined that the transaction is in the best interests of Telus Digital and fair to its minority shareholders.”

Shareholders will vote on October 27, 2025, and if approved, the deal is expected to close later this year.