Telus Corp. is reversing the usual Canadian position in international acquisitions and buying a California-based company.
The Vancouver-based telecommunications giant announced Monday that it was purchasing Simi Valley, Calif.-based business process and IT services provider Xavient Information Systems for $250 million USD.
Founded in 2002, Xavient employs some 1800 people across offices in the United States and India, according to an Oct. 30 press release, though a report last year indicated that the company employed 3000 workers in India alone and planned to add an additional 1000 in 2016.
The majority of its customers are based in the telecommunications, media, entertainment, healthcare, 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,” Telus representatives wrote in the statement. “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.”
The acquisition will represent Telus’s first operations in India, the release noted.
Telus is financing the acquisition with a mix of credit and Telus International shares, with the company initially receiving a 65 per cent majority interest in Xavient and the right to acquire the remaining interest on or before December 31, 2020 under its current agreement.
The deal is expected to close before the end of 2017.