Telus will combine LifeWorks with its Telus Health unit that connects patients with physicians virtually through its mobile apps such as Akira and Babylon.
LifeWorks shareholders will have the option to receive C$330 per share in cash, or 1.06 Telus shares for each held, or a mix of both. The deal has an equity value of C$2.3 billion, Telus said.
The per share offer represents a premium of roughly 80% to LifeWorks’ Wednesday close. U.S.-listed shares of Telus fell 3% to $22.1 in premarket trading.
Demand for telehealth services surged over the past two years as the COVID-19 pandemic encouraged patients to seek alternatives to in-person hospital visits. The boom has also attracted investments from large players such as Amazon.com Inc .
The combined company will have thousands of corporate clients across over 160 countries covering more than 50 million people, Telus said.
The deal will fuse LifeWorks’ program focusing on employee and family assistance with Telus Health’s technology that provides virtual pharmacy, home health monitoring, and electronic medical and health records.
Lifeworks and Telus Health together generated revenue of C$1.6 billion in their latest fiscal year.