The Canadian operator says the purchase will generate significant synergies and help them to accelerate the growth of their Telus Health division
Today, Telus has announced its purchase of human-resources firm LifeWorks for $2.3 billion, including debt, with plans to combine it with the operator’s existing healthcare subsidiary, Telus Health.
Toronto-based LifeWorks currently runs pension plans, absence management, and other health support services for corporate clients.
These capabilities will be integrated with Telus Health’s existing service offerings, creating a holistic mental health and wellness platform.
Once combined, Telus Health will have a revenue of roughly $1.6 billion, with corporate clients in over 160 countries.
“Today’s announcement will enable us to combine the respective skills and capabilities of LifeWorks and Telus Health, creating a globally leading, end-to-end, digital-first employee preventative and mental health and wellness platform covering more than 50 million lives,” said Darren Entwistle, President and CEO of Telus.
Telus Health initially began life back in 2008, when the operator purchased Emergis, a Canadian medical records business. Since then, the company has now grown to offer a wide variety of healthcare-related services, including virtual medical care, health benefits management, and e-proscription services.
The motivation for the acquisition appears to be primarily one of scale, with Telus suggesting that the changing corporate environment post-pandemic is putting an increasing emphasis on employee-wellness services.
“Access to care is a big challenge, and mental health is a growing theme across the world,” said Telus Health’s VP of virtual care Daniel Martz. “Employees are increasingly expecting to receive broader health and wellness and work-life support in this environment.”
As always, the acquisition will await the typical approvals from regulators and shareholders, with Martz telling analysts on a conference call earlier today that he expected the process to the “smooth sailing”.