- TELUS has sold its financial solutions business to Dye & Durham
- Net proceeds will support growth investments and debt retirement
- Investments will include connection of more customers to PureFibre network, advancing the 5G network, and increasing offerings to businesses
- The sale is subject to $65 million in income tax
- TELUS’ (TSX: T) shares are up by 0.93 per cent and are trading at $29.8 as of 1:39 PM EST
TELUS (T) has sold its financial solutions business to Dye & Durham for $500 million.
Net proceeds will support strategic growth investments and debt retirement.
Dye & Durham is a leading provider of cloud-based software and technology solutions designed to increase efficiency and productivity.
The transaction is expected to close on December 6, 2021.
President and CEO of TELUS, Darren Entwistle commented on the transaction.
“We are confident that [Dye & Durham] is the right organization to support our team members and the ongoing transformation of the financial services industry for many years to come.”
Growth investments include the connection of more clients to the PureFibre network, advancing the 5G network, and increasing offerings to small and medium-sized businesses.
The sale includes an arrangement in which TELUS will be the preferred communications partner and TELUS International the preferred technology partner for Dye & Durham.
This arrangement will create additional opportunities for both parties.
TELUS’ annual consolidated financial targets for 2021 remain the same and are not expected to be impacted by the sale. The sale is subject to income tax and is approximately $65 million.
Scotiabank acted as the financial advisor in this transaction to TELUS.
TELUS’ (TSX: T) shares price are up by 0.93 per cent and are trading at $29.8 as of 1:39 PM EST.