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TELUS (TU) Concludes WillowTree Acquisition for $1.225B

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TELUS Corporation (TU - Free Report) announced that it had completed the acquisition of WillowTree for $1.225 billion. The company has now been rebranded as WillowTree, a TELUS International Company.

WillowTree is a digital product agency that provides a range of services, including mobile app development, web development, user experience design and digital strategy consulting.

The acquisition will help the company to cross-sell its products to mutual customers and improve software development capabilities. Also, the acquisition will add front-end design and build capabilities to TELUS International's suite of services and expand its client base to include over 50 new marquee brands.

With the addition of WillowTree’s client base, TELUS International now supports more than 650 clients across various industries, including technology, media, eCommerce, financial services, healthcare and hospitality, per the company report.

The acquisition will also allow TELUS to accelerate its digital transformation and support product development, particularly in the health, agriculture and consumer goods sectors.

Barclays and Rothschild & Co served as financial advisors on the deal, while Shearman & Sterling LLP provided legal counsel and Scotiabank provided financing.

Based in Vancouver, Canada, TELUS is a leading telecom service provider in the country. The company offers wireless, wireline and Internet communications services for voice and data to businesses and consumers. Strategic acquisitions have been supplementing organic growth.

In September 2022, the company completed the acquisition of LifeWorks for C$2.3 billion. The acquisition helped the company to expand its presence in the lucrative digital health services market.

Prior to that, the company acquired Competence Call Center for C$1.3 billion in February 2020. The acquisition has helped the company to broaden its portfolio of customer experience, digital transformation and other services.

TELUS presently carries a Zacks Rank #3 (Hold). The stock has declined 15.4% compared with the sub-industry’s decline of 16.3% in the past year.

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