Telus signs $2.9B deal to buy LifeWorks, formerly Morneau Shepell

Telus Corp. has signed a deal to buy LifeWorks Inc., a Toronto-based telehealth company, valued at a staggering $2.9 billion. The deal also includes the company’s debt.

LifeWorks, formerly known as Morneau Shepell, is a world-leader in its employee wellness, in particular mental health supports, through digital technology.

The company also provides family assistance plans, absence management, pension and benefits administration and retirement planning.

“The combination of TELUS Health and LifeWorks represents an unmatched opportunity to create a leader in employer-focused primary and preventative digital healthcare and wellness solutions on a global basis,” President and CEO Stephen Liptrap said in a statement Thursday.

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Both companies sited the agreement will further their efforts to lead in telehealth services, which have become an attractive option to both employers and employees throughout the pandemic when many doctor’s offices were closed to in-person visits.

Telus CEO and President Darren Entwistle says it has become even more crucial in the post-pandemic era, where many are struggling with their mental health.

“Our combined organizations, guided by a shared set of values, will provide employers with simple, convenient and effective, data-driven primary and preventive care solutions for employees and their families to proactively manage their health and wellness, including their mental health, so that they can lead their healthiest and most productive professional and personal lives,” Entwistle said.

Under the agreement, LifeWorks shareholders will have the option to receive $33 in cash or 1.0642 Telus shares for each LifeWorks share held, subject to pro-ration.

The amount of cash and number of shares will be limited so that Telus will pay for half the deal in cash and half in shares.

LifeWorks shares closed at $18.20 on the Toronto Stock Exchange on Wednesday. Telus shares closed at $29.36.

The deal requires support by a two-thirds majority vote by LifeWorks shareholders as well as court and other regulatory approvals.

The company was founded by W.F. (Frank) Morneau Sr., and was later run by his son Bill Morneau, who became Canada’s finance minister.