TELUS International, a leading global business process and information technology services provider, is pleased to announce plans to acquire Xavient Information Systems, a global IT consulting and next-generation software services company with approximately 1,800 employees.
Xavient is headquartered in Simi Valley, California in the United States and has operations throughout the U.S. and in India, serving customers primarily in the telecommunications, media, entertainment, healthcare, and banking 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.
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. These will be TELUS International’s first operations in India.
The transaction will be financed primarily from TELUS International credit facilities and TELUS International shares. Under the agreement TELUS International will initially acquire a 65% majority interest in Xavient with the right to acquire the remaining interest on or before December 31, 2020.
Based on various performance-related metrics, the total consideration, including the purchase of the remaining interest, is estimated to be approximately US$250 million.
The acquisition is subject to customary closing conditions and regulatory approvals in the United States and India.
Closing is expected to occur before year end 2017.