TELUS International, a portfolio company of Baring Private Equity Asia, has completed previously announced acquisition of Xavient Information Systems.
TELUS International has acquired a 65% majority interest in Xavient with the right to acquire the remaining interest on or before December 31, 2020. The total consideration, including the purchase of the remaining interest, is estimated to be approximately US $250 million.
The acquisition, slated to close by end of 2017, was subject to approvals in the United States and India.
Xavient is now rebranded as Xavient Digital – powered by TELUS International. Approximately 1,800 Xavient employees from sites across the U.S. and India are joining TELUS International, bringing the total employee base to over 30,000 throughout North and Central America, Europe and Asia.
Rothschild and Citibank acted as exclusive financial advisors to TELUS International and Xavient, respectively, for this transaction.
TELUS International is majority (65%) owned by TELUS Corporation (TSX: T; NYSE: TU) with the remaining 35% owned by Baring Private Equity Asia.
News Release
TELUS International completes acquisition of Xavient Information Systems
Creates leading customer experience and next-generation IT consulting and delivery firm
LAS VEGAS and SIMI VALLEY, Calif., Feb. 6, 2018 /PRNewswire/ — TELUS International today confirmed it has closed its previously announced acquisition of Xavient Information Systems, now rebranded as Xavient Digital – powered by TELUS International. With all conditions satisfied, TELUS International now holds a majority interest in Xavient and will purchase the remaining interest on or before December 31, 2020.
Approximately 1,800 Xavient employees from sites across the U.S. and India are joining TELUS International, bringing the total employee base to over 30,000 throughout North and Central America, Europe and Asia. The partnership accelerates TELUS International’s ability to expand its global IT services offering with the addition of advanced, next-generation IT consulting and delivery capabilities, including Artificial Intelligence (AI)-powered Digital Transformation services, User Interface/User Experience (UI/UX) design, Open Source Platform services, Cloud services, Over-The-Top (OTT) solutions, Internet of Things (IoT), Big Data services, DevOps, and IT Lifecycle services.
“We’re very, very pleased to welcome Xavient to our TELUS International family,” said Jeffrey Puritt, President and CEO, TELUS International. “In addition to expanding our global footprint, we are gaining the collective depth and breadth of technology expertise of the Xavient Digital team as well as their proven capabilities in delighting top global clients for the past 15 years. Together, we will offer a more comprehensive suite of solutions to better serve existing and prospective clients and enable new go-to-market opportunities and growth in the digital and IT services market.”
“This is an exciting day for our entire team as we join our like-minded cultures focused on team member development and engagement to drive innovation and customer service excellence,” said Rajeev Tandon, Founder and CEO, Xavient. “The TELUS International team’s commitment to putting customers first is mirrored in our passion to provide exceptional services, amplify performance and revolutionize the technology landscape.”
Both companies have recently received industry accolades with TELUS International being named Service Provider of the Year at the 2017 Call Center Week Excellence Awards and Xavient receiving two gold awards at the prestigious 2017 IT World Awards. The combined company is focused on partnering with clients in the fast-growing tech, travel and hospitality, telecommunications and healthcare industries.
“In today’s fast-growing digital economy, disruptive forces, driven by next-gen technologies, are creating sought-after differentiated customer experiences that are at the heart of business growth and market share gains,” added Saif Ahmad, President and Chief Operating Officer, Xavient. “The combination of TELUS International’s advanced customer experience service offerings and Xavient Digital’s proven ability to lead all aspects of digital transformations, positions us as a valuable strategic partner that can wholly support an end-to-end value chain for clients.”
“As computer-human interactions continue to increasingly permeate all aspects of our lives, from healthcare to hotel bookings, the demand for the IT services and expertise that we provide will continue to grow in size and scope,” continued Puritt. “Xavient Digital – powered by TELUS International is an industry leader in this regard with the talent, resources, successful track record and global network necessary to harness the power of innovation to drive customer loyalty, new business outcomes and ultimately, top-line growth today and into the future.”
Rothschild and Citibank acted as exclusive financial advisors to TELUS International and Xavient, respectively, for this transaction.
About TELUS International
TELUS International focuses on human connection and innovation to deliver exceptional customer service and next-gen IT consulting that wow clients and delight their customers. More than 30,000 employees around the world, from locations across North and Central America, Europe and Asia, enable over 200 million customer interactions annually via voice, email, chat and social media, across fast-growing tech, financial services and fintech, gaming, travel and hospitality, and healthcare industries. TELUS International enables customer service delivery innovation through spirited teamwork, agile thinking, and a caring culture that puts customers first. The company serves clients in over 35 languages. TELUS holds a 65% interest in TELUS International with Baring Private Equity Asia holding the remaining 35%. Learn more at: telusinternational.com.
About Xavient Digital – powered by TELUS International
Formerly Xavient Information Systems Inc., Xavient Digital is a US-based provider of digital IT solutions and software services. Headquartered in California, the company has offices throughout the United States and an international network of delivery centers. Xavient Digital leverages its global footprint to deploy the best talent, time to market and cost optimization benefits for its customers. Xavient Digital’s core competencies are in digital transformation stacks and full lifecycle IT services across telecom, media, BFSI and consumer technology verticals. Learn more at: xavient.com
About TELUS
TELUS (TSX: T, NYSE: TU) is Canada’s fastest-growing national telecommunications company, with $13.1 billion of annual revenue and 12.9 million subscriber connections, including 8.8 million wireless subscribers, 1.7 million high-speed Internet subscribers, 1.3 million residential network access lines and 1.1 million TELUS TV customers. TELUS provides a wide range of communications products and services, including wireless, data, Internet protocol (IP), voice, television, entertainment and video. TELUS is also Canada’s largest healthcare IT provider, and TELUS International delivers business process solutions around the globe.
In support of our philosophy to give where we live, TELUS, our team members and retirees have contributed over $482 million to charitable and not-for-profit organizations and volunteered more than 7.7 million hours of service to local communities since 2000. Created in 2005 by President and CEO Darren Entwistle, TELUS’ 13 Canadian community boards and 5 International boards have led the Company’s support of grassroots charities and have contributed more than $60 million in support of 5,595 local charitable projects, enriching the lives of more than 2 million children and youth, annually. TELUS was honoured to be named the most outstanding philanthropic corporation globally for 2010 by the Association of Fundraising Professionals, becoming the first Canadian company to receive this prestigious international recognition. For more information about TELUS, please visit telus.com.
About Baring Private Equity Asia
Baring Private Equity Asia is one of the largest and most established independent alternative asset management firms in Asia, with a total committed capital of over US$11 billion. The firm runs a pan-Asian investment program, sponsoring buyouts and providing growth capital to companies for expansion or acquisitions, as well as a private credit and a pan-Asian real estate private equity investment program. The firm has been investing in Asia since its formation in 1997 and has over 140 employees located across offices in Hong Kong, China, India, Japan and Singapore. Baring Asia currently has over 41 portfolio companies active across Asia with a total of 178,000 employees and sales of approximately US$35 billion in 2016. For more information, please visit bpeasia.com.