VANCOUVER — Telus International, a spin-off from Telus Corp., says it is acquiring full-service digital product provider WillowTree for US$1.225 billion, including debt, as it looks to continue growing.
The digital consulting business says the assumed debt amounts to US$210 million, of which US$125 million will be settled in Telus International's subordinate voting shares, approximately US$160 million will be reinvested by certain eligible management team members and the remainder will be paid in cash when the deal closes.
Telus International says as part of the transaction, majority stakeholder Insignia Capital Group will sell its stake in WillowTree after initially investing in the company in 2018.
Headquartered in Charlottesville, Va., WillowTree operates in the United States, Canada, Brazil, Portugal, Spain, Poland and Romania, and works with clients such as CBC, PepsiCo, Anheuser-Busch InBev, Manulife and Marriott.
Telus International says WillowTree will help it expand its global footprint to Brazil and Portugal, and support product development across its business, particularly within health and agriculture and consumer goods.
The deal is expected to close in January 2023, and is subject to customary closing conditions and regulatory approvals.
This report by The Canadian Press was first published Oct. 27, 2022.
Companies in this story: (TSX:T, TSX:TIXT)
The Canadian Press