Telus Corp. (TSX:T) has landed an extra $500 million for the company coffers after selling off its fintech division to a Toronto software developer.
The Vancouver-based telecom giant said Monday — the day of the deal’s close — it would spend the next two years helping transition the division’s services over to new owner Dye & Durham Ltd. (TSX:DND).
The two companies also struck a deal whereby Telus would serve as Dye & Durham’s preferred communications partner, while subsidiary Telus International Cda Inc. (TSX:TIXT) would serve as the preferred technology partner.
Telus’ financial solutions business specializes in payment processing technology.
Dye & Durham CEO Matt Proud described the new acquisition as the largest non-bank payment platform in Canada, having processed 140 million bill and tax payments.
His Toronto-based company is known for software that helps legal and business professionals access public records and registries, while assisting with document searches and records filings.
Telus said in a news release the fresh dollars from the sale would go towards further deployment of its 5G wireless and internet networks, as well as its health-tech and agritech divisions.
The company is not changing its 2021 financial targets following the sale but it expects to make a $65-million tax payment as a result.
Scotiabank [Bank of Nova Scotia (TSX:BNS)] acted as Telus’ financial adviser for the deal.