Telus announced on Thursday it plans to acquire LifeWorks in a $2.9 billion CAD deal.
Toronto-based LifeWorks calls itself a “leading provider of technology-enabled HR services that deliver an integrated approach to wellbeing,” and was formerly known as Morneau Shepell.
The company is publicly-traded on the Toronto Stock Exchange and Telus is offering $33 per common share, or $2.3 billion for the company. Telus says it will also assume net debt of $600 million.
LifeWorks shareholders will need to vote on the deal and currently, shares have spiked up 68% today at $30.73 per share.
Telus says the deal for LifeWorks shareholders has an option for $33 cash per share, or 1.0642 Telus shares for each LifeWorks common share held, subject to pro-ration. Telus says it will pay for the deal with 50% cash and 50% in shares.
“Today’s announcement will enable us to combine the respective skills and capabilities of LifeWorks and TELUS Health, creating a globally leading, end-to-end, digital-first employee preventative and mental health and wellness platform covering more than 50 million lives,” said Darren Entwistle, President and CEO of TELUS, in a statement.
LifeWorks says it has nearly 24,000 clients in over 160 countries and is “trusted by 25,000 companies around the globe.”
Stephen Liptrap, President and CEO of LifeWorks said the proposed deal “represents an exciting new chapter for LifeWorks. The combination of TELUS Health and LifeWorks represents an unmatched opportunity to create a leader in employer-focused primary and preventative digital healthcare and mental wellness solutions on a global basis.”
LifeWorks shareholders will need to vote to approve the deal with a two-thirds majority, while the transaction is subject to court and regulatory approvals still.
