LifeWorks ups Telus’s value

Article Excerpt

TELUS, $28.57, is a buy. The company (Toronto symbol T; Shares outstanding: 1.4 billion; Market cap: $40.1 billion; TSINetwork Rating: Above Average; Dividend yield: 4.6%; www.telus.com) is now buying LifeWorks Inc. (Toronto symbol LWRK) for $2.9 billion. Formerly known as Morneau Shepell Inc., this firm sells software and computer systems that help businesses manage a variety of functions, including employee and family assistance, health and wellness, recognition, pension and benefits administration, retirement consulting, and actuarial and investment services. The company plans to merge LifeWorks with its Telus Health division, which helps clinics, pharmacies and hospitals manage electronic patient records. The merged entity will have annual revenue of $1.6 billion, or 9% of Telus’s annual revenue of $17.1 billion. Telus also expects the merger will let it cut $170 million from its annual costs in the first three to five years. Telus Corporation is a buy. buy…

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