Telus unit’s foray into In­dia pro­jected to lift wire­line

Calgary Herald - - FINANCIAL POST - EMILY JACK­SON

Telus In­ter­na­tional an­nounced an ac­qui­si­tion that will ex­pand its foot­print to In­dia for the first time, a move that’s ex­pected to bump up rev­enue for its par­ent Telus Corp.’s wire­line di­vi­sion.

The busi­ness process out­sourc­ing unit said Mon­day it will ac­quire a 65-per-cent in­ter­est in Cal­i­for­ni­abased Xavient, an IT con­sult­ing and soft­ware ser­vices com­pany with 1,800 em­ploy­ees in the U.S. and In­dia, with the op­tion to buy the rest by Dec. 31, 2020. The deal’s to­tal value is about US$250 mil­lion.

This marks Telus In­ter­na­tional’s sec­ond ma­jor ac­qui­si­tion in the past few months. In Au­gust, it pur­chased Ire­land-based Vox­pro, a cus­tomer, tech and sales sup­port com­pany with 2,700 em­ploy­ees in the U.S., Ire­land, Ro­ma­nia and the Philip­pines. It did not dis­close the value of the Vox­pro trans­ac­tion. Vancouver-based Telus, Canada’s third-largest telecom­mu­ni­ca­tions com­pany, owns a 65-per-cent in­ter­est in its in­ter­na­tional arm. It sold a 35-per-cent stake to Bar­ing Pri­vate Eq­uity Asia for ap­prox­i­mately $600 mil­lion in 2016. At the time, Telus’s CEO in­di­cated the cash was needed to build its fi­bre net­work in Canada.

While mul­ti­ple an­a­lysts say the re­cent deals aren’t overly ma­te­rial to Telus — it re­ports nearly $13 bil­lion in rev­enue an­nu­ally — they ex­pect the ac­qui­si­tions will mean a small boost to wire­line rev­enue. re­spec­tively.

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