TELUS International, a portfolio company of Baring Private Equity Asia, has agreed to acquire Xavient Information Systems for US $250 million.
TELUS International is 65% owned by TELUS Corporation (TSX: T; NYSE: TU) and 35% owned by Baring Private Equity Asia.
TELUS International intends to finance Xavient acquisition from its credit facilities and the issuance of TELUS International shares.
TELUS International will initially acquire a 65% majority interest in Xavient with the right to acquire the remaining interest on or before December 31, 2020. The total consideration for 100% of Xavient is estimated to be approximately US $250 million. The acquisition is expected to occur before year end 2017.
Simi Valley, California based Xavient is a global IT consulting and next-generation software services company with approximately 1,800 employees. Xavient has operations throughout the U.S. and in India, serving customers primarily in the telecommunications, media, entertainment, healthcare, and banking and financial services sectors.
This acquisition of Xavient will accelerate TELUS International’s objective to expand its global service offerings with the addition of advanced, next-generation IT consulting and delivery capabilities, including User Interface/User Experience (UI/UX), Open Source Platform services, Cloud services, Over-The-Top (OTT) solutions, Internet of Things (IoT), Big Data services, DevOps, and automation and digitization in order to provide a more fulsome suite of services to existing and prospective clients. 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.
TELUS International is a leading global business process and IT services company with almost 28,000 employees around the world, including in Canada, the United States, Europe, Central America, the Philippines and the United Kingdom.