Telus reaches $763M takeover deal with Emergis
Telus has struck a friendly deal withEmergis to buy the IT specialist for $763 million, the two companies announced Thursday.
TheNo. 2phone company in Canada is offering $8.25 in cash for each share of Quebec-based Emergis. That's a 19 per cent premium to the$6.94 the stock closed at Wednesday on the TSX.
Emergis shares closed Thursday at $8.20, up $1.26.
Emergis concentrates on IT solutions for the health care and financial sectors— with strong presencesin health claims processing and pharmacy management systems.
"The private sector has a vital role to play in helping Canadian healthcare providers and payers continue to modernize," Telus business solutions president Joe Natale saidin a release.
"Telus and Emergis will provide an advanced set of health information management systems to automate and integrate health records and health claims."
Telus has the right to match any other offer for the company.
Shareholders representing 22 per cent of Emergis's stock have agreed to tender to the offer, and the board of Emergis is recommending all shareholders accept the offer. Two-thirds acceptance is required for the deal to proceed.
Emergis began its corporate life in 1988 as MPACT Immedia and became BCE Emergis in 1999. Five years later, BCE spun off its majority stake in the company and BCE Emergis became Emergis Inc.