Baring Private Equity Asia To Acquire 35 Per Cent Stake In TELUS International
Agreement leverages TELUS’ world class customer service and employee engagement with Baring Private Equity Asia’s global relationships to expand TELUS International’s business process, IT and customer service operations.
Values TELUS International at approximately US$1 billion.
Manila, Philippines – TELUS International has reached an agreement with Baring Private Equity Asia (“Baring Asia”) for it to acquire a 35 per cent stake in TELUS International. The agreement values TELUS International at approximately US$1 billion, with TELUS shareholders retaining a 65 per cent interest in the business. In alignment with the company’s top priority of delivering client service excellence, TELUS intends to retain a long-term majority ownership position in TELUS International.
“We are excited to welcome Baring Asia’s entire team to the TELUS family. With Baring Asia’s close to 20 years’ exceptional experience developing and growing companies through insightful, strategic counsel, a strong Asian market presence and an extensive global network, we have found the right partner for TELUS International,” said Jeffrey Puritt, TELUS International President.
“I could not be more proud of our 22,000 TELUS International team members; today is the culmination of a decade long exercise in grit and determination, of an unwavering commitment to our vision to be the leading brand ambassador of customer experience innovators, redefining the global outsourcing industry through our spirited teamwork and caring culture; and it is the beginning of the next chapter in our story, as we look to amplify the volume and velocity of our efforts and accomplishments with the support of our new partner, Baring Asia,” added Mr. Puritt. “We look forward to expanding operations and investing further in the Asia-Pacific region as an area of focus for TELUS International, based on the growing needs of our customers.”
Launched by TELUS in 2005, TELUS International has become a leading global provider of customer service, IT, and business process services to industry leaders across the telecommunications, utilities, high tech, gaming, finance, retail, e-commerce, travel and logistics, and health care sectors. TELUS International has more than 22,000 team members located in the Philippines, United States, Canada, Europe, and Central America serving clients in more than 35 languages. More than 10,000 team members, close to half the TELUS International team, work from four offices in Manila, Philippines and proudly serve customers from around the world. The TELUS International team is a division of TELUS, Canada’s fastest growing telecommunications company. As such, it is part of TELUS’ unique corporate culture that has delivered the highest employee engagement in the world for a company of its size and composition, and earned a reputation for having the best customer service of any major national carrier.
Jean Eric Salata, CEO of Baring Asia, commented: “In TELUS International, we see a strong company with best-in-class services which has successfully developed from a captive provider to a leading market player serving diverse customers. With an exceptional team, a portfolio of top-tier customers in fast-growing industries, and a strong global footprint, we believe that the company is in a great position to build on its past successes and establish its position as a leading international player in the space. We aim to leverage our footprint and cross-border capabilities to further enhance TELUS International’s client portfolio and help expand its market presence. The investment is also a validation of our commitment to the Philippines, a market that we are positive about and have also invested in through our real estate platform.”
The agreement is subject to customary closing conditions. Rothschild acted as sole financial advisor to TELUS for this transaction.
TELUS Forward-looking statement:
This news release contains statements about expected future events, including, but not limited to, statements relating to the proposed purchase by Baring Asia of a stake in TELUS International. By their nature, forward-looking statements require the Company to make assumptions and predictions and are subject to inherent risks and uncertainties. There can be no assurance that the conditions to closing of the transaction will be satisfied, that the associated benefits of the transaction for TELUS shareholders and customers will be realized or that growth plans for TELUS International will be realized. There is significant risk that the forward-looking statements will not prove to be accurate. The forward-looking statements contained in this news release describe our expectations at the date of this news release and, accordingly, are subject to change after such date. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future events, including capital expenditures, to differ materially from those expressed in the forward-looking statements. Accordingly, this news release is subject to the disclaimer and qualified by the assumptions, qualifications and risk factors referred to in the 2016 first quarter Management’s discussion and analysis and in the 2015 annual report, and in other TELUS public disclosure documents and filings with securities commissions in Canada (on SEDAR at sedar.com) and in the United States (on EDGAR at sec.gov). Except as required by law, TELUS disclaims any intention or obligation to update or revise forward-looking statements.
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