10 July 2018 11:30
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The firm’s advisory services and technologies in human resources Morneau Shepell has acquired all of the outstanding shares of the provider of employee assistance programs (EAP) LifeWorks Corporation ltd. The transaction amounted to 426 million dollars (M$).
The acquisition will lead to synergies on an annualized basis of approximately$ 10 Million in 2019 and$ 15 Million by 2020, says Morneau Shepell. It will allow the firm to consolidate its position in the United States, the United Kingdom, Australia and Canada, where LifeWorks is already established. LifeWorks has generated revenues of$ 105 Million in 2017.
“LifeWorks provides considerable forces and are complementary to our sector of the EAP. Morneau Shepell specializes more in the aspect of “clinical treatment” health in the workplace, building on a strong technology platform, points out Rita Fridella, executive vice-president, Morneau Shepell and chair, support Solutions employees. LifeWorks offers an integrated platform focused on the EAP, employee engagement, rewards and recognition, and communications relating to HR. Together, we can create an experience-employee integrated improved. “
To finance part of the acquisition, Morneau Shepell has agreed with a syndicate of underwriters co-led by TD securities and National Bank Financial to issue 210 Million$ of subscription receipts. The leaders of LifeWorks will issue$ 31 Million in shares.