VANCOUVER, British Columbia, Dec. 06, 2021 (GLOBE NEWSWIRE) -- TELUS Corporation (TSX: T; NYSE: TU), a leading communications and information technology company, announced today the sale of its financial solutions business to Dye & Durham, a leading provider of cloud-based software and technology solutions designed to improve efficiency and increase productivity for the legal community, business professionals, governments and financial institutions. The transaction closing date is today, December 6, 2021.
"As a long-standing, trusted partner to leading financial institutions across Canada, our team has provided the financial community with robust solutions that help them leverage technology to transform and advance their core business through digitization," said Darren Entwistle, President and CEO of TELUS. "Dye & Durham shares our commitment to delivering customer service excellence, as demonstrated by its expansive and loyal client base. When combined with the company's passion for human capital development and employee engagement, we are confident that this is the right organization to support our team members and the ongoing transformation of the financial services industry for many years to come."
Net proceeds from the transaction will be used to support strategic growth investments including connecting more homes and businesses to our leading PureFibre network, advancing our 5G network build and investments to support enhancing new areas of growth including our offerings to small and medium sized businesses, as well as in TELUS Health and TELUS Agriculture. Proceeds will also support debt retirement. TELUS will provide operational transition services to Dye & Durham for up to 24 months following closing to ensure a smooth transition of operations.
TELUS and Dye & Durham have entered into an arrangement pursuant to which TELUS will be the preferred communications partner and TELUS International a preferred technology partner for Dye & Durham. Importantly, this arrangement will create additional opportunities for the benefit of both parties to deliver a variety of value-added and next-generation digital technology services across the small and medium business market, bolstering the ability for Canadian businesses to thrive in our digital economy.
With its leading infrastructure and technology solutions, combined with its customers first focused team and deep history of collaboration with financial communities, TELUS' financial solutions business and its team members will enhance Dye & Durham's portfolio of leading cloud-based solutions servicing global clients across legal, corporate, government, and financial industries with a focus on digitizing small business' processes. The financial solutions business complements Dye & Durham with their digital financial ecosystem with established solutions across payment processing, real estate technology and digital banking managed solutions serving well established customers within the financial services vertical.
TELUS' annual consolidated financial targets for 2021 remain unchanged and consolidated financial results for 2021 are not expected to be materially impacted by the sale of the financial solutions business. The tax gain from the sale will be subject to an income tax payment, estimated to be approximately $65 million, to be paid in 2021. Our revised cash tax assumption for 2021 of $480 to $560 million, as updated in our third quarter 2021 earnings release dated November 5, 2021, is inclusive of this amount.
Scotiabank acted as a financial advisor to TELUS on the sale of the business.
About TELUSTELUS (TSX: T, NYSE: TU) is a dynamic, world-leading communications technology company with $16 billion in annual revenue and 16 million customer connections spanning wireless, data, IP, voice, television, entertainment, video, and security. We leverage our global-leading technology and compassion to enable remarkable human outcomes. Our longstanding commitment to putting our customers first fuels every aspect of our business, making us a distinct leader in customer service excellence and loyalty. In 2020, TELUS was recognized as having the fastest wireless network in the world, reinforcing our commitment to provide Canadians with access to superior technology that connects us to the people, resources and information that make our lives better. TELUS Health is Canada's leader in digital health technology, improving access to health and wellness services and revolutionizing the flow of health information across the continuum of care. TELUS Agriculture provides innovative digital solutions throughout the agriculture value chain, supporting better food outcomes from improved agri-business data insights and processes. TELUS International (TSX and NYSE: TIXT) is a leading digital customer experience innovator that delivers next-generation AI and content management solutions for global brands across the technology and games, ecommerce and FinTech, communications and media, healthcare, travel and hospitality sectors. TELUS and TELUS International operate in 25+ countries around the world. Together, let's make the future friendly.
Driven by our passionate social purpose to connect all citizens for good, our deeply meaningful and enduring philosophy to give where we live has inspired TELUS, our team members and retirees to contribute more than $820 million and 1.6 million days of service since 2000. This unprecedented generosity and unparalleled volunteerism have made TELUS the most giving company in the world.
Forward-looking Statements:This news release contains forward-looking statements including statements relating to the planned use of proceeds from the sale of the financial services business and relating to the consolidated financial targets and financial results of TELUS Corporation. These statements are made pursuant to the "safe harbour" provisions of applicable securities laws in Canada and the United States Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements are subject to inherent risks and uncertainties and are based on assumptions, including assumptions about future economic conditions and courses of action. These assumptions may ultimately prove to have been inaccurate and, as a result, our actual results or events may differ materially from our expectations expressed in or implied by the forward-looking statements. Our general outlook and assumptions for 2021 on which our financial targets are based are presented in Section 9 General trends, outlook and assumptions, and regulatory developments and proceedings in our 2020 annual MD&A and risks that may affect our business and financial performance are described in detail in Section 9 General trends, outlook and assumptions, and regulatory developments and proceedings and Section 10 Risks and risk management in our 2020 annual MD&A as well as in other TELUS public disclosure documents and filings with securities commissions in Canada (on SEDAR at sedar.com) and in the United States (on EDGAR at sec.gov). Those descriptions are incorporated by reference in this cautionary statement but are not intended to be a complete list of the risks that could affect TELUS. Many of these factors are beyond our control or our current expectations or knowledge. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements in this document describe our expectations and are based on our assumptions as at the date of this document and are subject to change after this date. Except as required by law, we disclaim any intention or obligation to update or revise any forward-looking statements. The forward-looking statements in this news release regarding our financial targets are presented for the purpose of assisting our investors and others in understanding certain key elements of our expected 2021 financial results as well as our objectives, strategic priorities and business outlook. Such information may not be appropriate for other purposes.
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