TELUS Completes Privatization of TELUS Digital

Executive Summary

• TELUS completes its previously announced acquisition of the remaining shares of TELUS Digital for an aggregate consideration of approximately US $539 million, resulting in 100% ownership.
• The transaction is expected to generate roughly US $150 million in annual cash synergies from operational efficiencies and AI‑driven automation.
• Shareholders received a mix of cash and TELUS common shares; TELUS issued 1,849,374 new TELUS shares (≈ <1% of outstanding) and paid US $508.97 million in cash.

Key Details

• Consideration: US $4.50 per TELUS Digital share (cash and/or TELUS common shares), total ≈ US $539 M.
• Shareholder Election Results:
• Cash only – 106,755,480 shares
• Share only – 448,976 shares
• Combination cash + share – 12,697,517 shares
• Final Issuance & Payments:
• TELUS issued 1,849,374 TELUS common shares (≈ <1% of its outstanding shares).
• Cash paid: US $508,970,041.54.
• Synergy Estimate: Approximately US $150 M in annualized cash synergies from integration, AI automation, business simplification and cross‑promotion.
• Regulatory Approvals:
• Shareholder approval at special meeting (Oct 27, 2025).
• Supreme Court of British Columbia order granted (Oct 29, 2025).
• Delisting: TELUS Digital’s subordinate voting shares to be delisted from TSX and NYSE; the company will cease reporting under Canadian securities laws and deregister under the U.S. Securities Exchange Act.
• Ownership Post‑Closing: TELUS now beneficially owns 100% of TELUS Digital’s multiple and subordinate voting shares (≈ 92.7% of total voting rights).

Notable Quotes

“Together, we will accelerate the integration of world‑leading digital customer experience solutions, AI‑driven platforms and SaaS innovation across all lines of our business… We expect this integration to generate approximately $150 million in annualized cash synergies…” – Darren Entwistle, President & CEO, TELUS.

“The Special Committee was committed to securing the best outcome for TELUS Digital and its minority shareholders… delivering immediate, compelling value to shareholders.” – Josh Blair, Co‑Chair, TELUS Digital Special Committee.