Merger adds significant scale, growth and diversity to TELUS International
TELUS Corporation and its global arm, TELUS International – a customer experience innovator that designs, builds and delivers next-generation digital solutions for some of the world’s most established brands, confirmed the close of their previously announced acquisition of Competence Call Center (CCC). TELUS International now holds a 100% interest in CCC.
The merged company has an expanded portfolio of customer experience, digital transformation, content moderation, IT lifecycle, advisory and digital consulting, risk management, and back-office support that will enable new go-to-market opportunities and drive growth.
“We are committed to creating a friendlier future for citizens globally, one in which technology supports the security and integrity of the data and information we process every day,” said Darren Entwistle, President and CEO of TELUS. “Through this important acquisition, our TELUS International team will benefit from the thought leadership, skill and dynamic insights of more than 8,500 CCC employees across 11 European countries, supporting our global customers with innovative digital solutions. We are thrilled to welcome these new team members to our TELUS International family. Importantly, this represents our largest ever international transaction, as we augment our TELUS International employee base to almost 50,000 team members, delivering service and support in over 50 languages from more than 50 delivery centres in 20 countries across North and Central America, Europe and Asia.”
“We’re so pleased to see the culmination of our team’s remarkable efforts, passion and diligence with the merger of TELUS International and CCC – two like-minded organizations similarly focused on putting customers first, caring for team members, and investing in the communities where we operate,” said Jeff Puritt, President and CEO, TELUS International. “In addition to the many benefits stemming from the significant influx of top industry talent, CCC’s core business and complementary products, services, locations and languages will enable us to access new high-growth markets and position us as a valuable strategic partner that can deliver innovative end-to-end solutions for clients.”
“CCC is TELUS International’s third sizeable acquisition in less than three years, further fueling our momentum to achieve impressive growth targets and establish an enhanced scope of global operations, while simultaneously gaining the requisite depth and breadth of expertise in next-gen technology and content moderation to differentiate ourselves and compete aggressively in the marketplace,” continued Puritt. “These successful mergers, in conjunction with ongoing healthy organic growth that includes new sites opened in Guatemala City, Chengdu and Manila in 2019, have provided the necessary scale and breadth to realize a meaningfully expanded enterprise value and contemplate a public listing in the next 12 to 24 months, positioning TELUS International for continued growth in the years to come.”
TELUS International will continue to focus on partnering with clients in the fast-growing tech, travel and hospitality, financial services and fintech, telecommunications, games and healthcare industries, and CCC has an established presence in the content moderation space, counting large, well known global brands and social media companies as its customers.
“Today is an extraordinary and remarkable day in the successful 22-year journey of our company,” said Christian Legat, CEO, CCC. “With the official close of our partnership with TELUS International, we are excited to begin realizing the numerous benefits of bringing together our highly-engaged teams to pool our knowledge and skills, as well as our companies’ resources and geographic footprints to deliver more fulsome, first-class customer experiences from more regions around the world.”
The acquisition is expected to add significant scale to TELUS International, an important and differentiated growth driver for TELUS, and will support TELUS’ consolidated financial and operating results including revenue, EBITDA and free cash flow growth as previously disclosed. The acquisition of CCC will be immediately revenue and EBITDA accretive to TELUS and TELUS International, as well as EBITDA margin accretive to TELUS International. Additionally, given the low capital intensity of the combined businesses, the transaction is also expected to support immediate free cash flow expansion.
Both companies have earned numerous industry accolades over the years. Most recently, TELUS International received an Achievers 50 Most Engaged Workplaces Award for the third consecutive year in 2019 and Gold in the Employer of the Year category for Business Services at the 2019 Stevie® Awards for Great Employers, and CCC was honoured with the 2019 CCV Quality Award for customer satisfaction.
Barclays and Rothschild & Co served as joint financial advisors and Shearman & Sterling LLP served as legal counsel to TELUS International for this transaction.