Telus International (TSX:T)(NYSE:TU), a global business process and information technology services provider, is to acquire Xavient Information Systems, a Simi Valley, California-based global IT consulting and next-generation software services company with approximately 1,800 employees.
Under the agreement, subject to customary closing conditions and regulatory approvals in the United States and India, Telus will initially acquire a 65% majority interest in Xavient with the right to acquire the remaining interest on or before December 31, 2020. Based on various performance-related metrics, the total consideration, including the purchase of the remaining interest, is estimated to be approximately US$250m.
Closing is expected to occur before year end 2017.
The acquisition – financed primarily from Telus International credit facilities and International shares – will accelerate Telus’ objective to expand its global service offerings with the addition of advanced IT consulting and delivery capabilities, including User Interface/User Experience (UI/UX), Open Source Platform services, Cloud services, Over-The-Top (OTT) solutions, Internet of Things (IoT), Big Data services, DevOps, and automation and digitization in order to provide an enlarged suite of services to existing and prospective clients.
The acquisition will also advance its commitment to grow its capabilities in the U.S. and enhance its geographic diversity by expanding into India.
Telus International is a global business process and IT services company with almost 28,000 employees around the world, including in Canada, the United States, Europe, Central America, the Philippines and the United Kingdom. The company serves clients in over 35 languages with over 200 million customer interactions supported annually via voice, email, chat and social media, across tech, financial services and fintech, gaming, travel and hospitality, and healthcare industries.
Canadian national telecommunications company Telus holds a 65% interest in Telus International with Baring Private Equity Asia holding the remaining 35%.