Telus Acquires Digital-Health Firm LifeWorks For $2.3 Billion

Canadian telecommunications company Telus (T) is acquiring digital-health provider LifeWorks
(LWRK) for $2.3 billion.

Telus said it will pay $33 for each LifeWorks share, representing an 80% premium over where
LifeWorks stock closed on the Toronto Stock Exchange the day before the acquisition was
announced. LifeWorks stock rose nearly 70% after the Telus acquisition was made public.

Telus said it is also offering the option for LifeWorks shareholders to accept cash or stock or a
combination of both. The deal helps Telus to expand further into health services as it diversifies
its business.

The combination will allow Telus and LifeWorks to form a global provider of digital healthcare
and wellness services. Telehealth services have grown in recent years after the global
pandemic forced Canadians to seek healthcare online rather than at a hospital or clinic.

Toronto-based LifeWorks provides human-resources consulting, outsourcing, and mental health
services primarily to private sector companies. It has 7,000 employees and 25,000 clients. The
firm was previously known as Morneau Sheppell and was previously run by Bill Morneau, who
served as Canada’s federal finance minister from 2015 to 2020.

Telus stock is down 6% this year at $27.87 per share.