TELUS Intl To Buy Xavient Information Systems For $250 Mln - Quick Facts

(RTTNews) - TELUS International (T.TO, TU), a business process and information technology services provider, announced Monday its plans to acquire Xavient Information Systems, an IT consulting and next-generation software services company. Based on various performance-related metrics, the total consideration, including the purchase of the remaining interest, is estimated to be approximately $250 million.

Under the agreement ,TELUS will initially acquire a 65% majority interest in Xavient with the right to acquire the remaining interest on or before December 31, 2020.

The acquisition is subject to customary closing conditions and regulatory approvals in the United States and India. Closing is expected to occur before year end 2017.

Simi Valley, California-based Xavient, with approximately 1,800 employees, has operations throughout the U.S. and in India, serving customers primarily in the telecommunications, media, entertainment, healthcare, and banking and financial services sectors.

TELUS expects the acquisition to accelerate its objective to expand its global service offerings with the addition of advanced, next-generation IT consulting and delivery capabilities, including User Interface/User Experience or UI/UX, Open Source Platform services, Cloud services, and Over-The-Top or OTT solutions, among other things.

The acquisition will also advance TELUS International's commitment to grow its capabilities in the U.S. and enhance its geographic diversity by expanding into India. These will be TELUS International's first operations in India.

The transaction will be financed primarily from TELUS International credit facilities and TELUS International shares.