VANCOUVER — Telus Corp. has signed a deal to buy LifeWorks Inc. valued at $2.9 billion including debt as it pushes further into employee wellness and healthcare services.
LifeWorks, formerly known as Morneau Shepell, is an HR firm that helps companies with employee and family assistance plans, absence management, pension and benefits administration and retirement planning.
The transaction will add LifeWorks’ employee and family assistance program and benefit administration capabilities to Telus Health’s digital technologies.
Telus Health offers virtual care and provides patients access to digital pharmacy options, home health monitoring and electronic health records.
“This transaction is financially compelling and strategically attractive to Telus, and a natural complement to Telus Health,” Telus CFO Doug French said in a statement Thursday.
The move comes as digital health and virtual care services saw great success during the COVID-19 pandemic amid lockdowns and concerns about spreading the virus.
Under the agreement, LifeWorks shareholders will have the option to receive $33 in cash or 1.0642 Telus shares for each LifeWorks share, subject to proration.
The amount of cash and number of shares will be limited so that Telus will pay for half the deal in cash and half in shares.
Scotiabank analyst Jeffrey Fan sees the transaction strengthening Telus’ place in the digital health industry.
“This acquisition will position the company as not only a significant force in the corporate well-being and EAP (employee assistance program) space in Canada but also opens the potential for more growth and tuck-ins internationally,” he said in a note to clients.
Desjardins analyst Jerome Dubreuil also views the proposed acquisition as a positive for Telus.
“The deal could also significantly increase Telus Health’s scale and make the unit mostly self-sufficient in terms of funding new initiatives,” he said in a note to clients.
Telus expects the transaction to help generate annual savings in the range of $170 million to $200 million over the next three-to-five years.
The combined companies have corporate clients across Canada, the U.S. and in over 160 countries covering more than 50 million lives globally.
While analysts are generally positive on the deal, some money managers aren’t totally excited about it in this market climate.
“The premium (Telus) is paying in a market that is only going one way is not a good look,” said Baskin Wealth Management’s chief investment officer Barry Schwartz.
The deal requires support by a two-thirds majority vote by LifeWorks shareholders as well as court and other regulatory approvals.
The companies hope to close the deal in the fourth quarter of 2022.
Telus said on the conference call with analysts that it does not anticipate much overlap on services between the two organizations both in Canada and internationally, and expects the regulatory process to be “smooth sailing.”
LifeWorks shares closed at $18.20 on the Toronto Stock Exchange on Wednesday. Telus shares closed at $29.36.
News of the deal sent LifeWorks stock up nearly 69 per cent in early trading Thursday.
This report by The Canadian Press was first published June 16, 2022.
Companies in this story: (TSX:T, TSX:LWRK)
The Canadian Press
Telus Corp. marks opening of Telus Sky in downtown Calgary
CALGARY — Telus Corp. marked the opening of its new 60-storey Calgary headquarters on Wednesday.
The new $400-million skyscraper, Telus Sky, has been in development for nine years and is now the third-tallest building in downtown Calgary. It features 750,000 square feet of office and retail space as well as 326 rental homes.
The building’s eye-catching design, by architects Bjarke Ingels Group (BIG) and Dialog, along with developer partner Westbank and Allied, starts with a rectangular floorplate and then gradually twists as it rises.
Integrated into the facade of Telus Sky is Canada’s largest public art display. “Northern Lights” by Canadian author and artist, Douglas Coupland, creates a light show across the building’s exterior.
Telus Sky will be home to more than 1,600 Telus employees. It joins TELUS Garden in Vancouver, TELUS Harbour Toronto, TELUS House Ottawa, and Place TELUS Québec as one of the company’s LEED (Leadership in Energy and Environmental Design) Platinum-certified buildings.
Among the building’s environmental features is a storm water management system that recycles rainwater for use in washroom toilets, reducing the building’s municipal water demand by 70 per cent.
This report by The Canadian Press was first published July 6, 2022.
Companies in this story: (TSX:T)
Amanda Stephenson, The Canadian Press
Business Spotlight: Massage Above All
This week’s Business Spotlight shines on Massage above all an excellent place to heal and relax with truly professional staff.
1. What is your business?
We are a Professional Therapeutic and Holistic Massage clinic serving Central Alberta in Downtown Red Deer since 1995.
2. When did your business open?
Originally opened in a small rental space in 1995, as we grew, it became apparent that we would need to expand. We purchased and completely renovated our current 2525 sq ft property with our clients in mind. Each treatment is spacious, clean and meets all health standards as per AHS.
3. What makes your business unique?
We are a local Massage Clinic that owns our property and has thrived in the Downtown for some 27 years: 6 treatment rooms spacious lobby. Our therapists are registered with professional associations, and as such, we can direct bill to most insurance companies. *Some conditions apply*
4. What are some products/services that you offer?
We offer Professional Massage Therapy services, including Therapeutic, Relaxation, Lymphatic, Hot Stone, Couples Massage, Reflexology, Cupping, and Craniosacral therapy.
We also offer fair trade merchandise from around the world. Stop in and see
5. Why did you choose Downtown Red Deer as the location for your business?
Personally, I chose the Downtown because our family has owned and operated businesses since 1974 when we moved to Red Deer from Calgary when my parents took over Red Deer Auction Co Ltd.
6. What do you think makes Downtown vibrant?
The unique and friendly businesses and business owners and staff.
7. Finish this sentence: I love Downtown Red Deer because…
It is the core of the city, close to home. A vibrant community with eclectic and unique shopping experiences.
For more information
Facebook – Massage Above All | Facebook
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