POSTED AT 12:08 AM EDT    Friday, May 11
Telus signs $200-million government pact

Globe and Mail Update

Telus Corp. moved forward on its plan to become a national player in Canada's telecom market Thursday with a pair of deals that will see it set up a new data network for the federal government and buy a Toronto-based Internet services company.

The first transaction will see Burnaby, B.C.-based Telus provide a new managed data network for the federal government, serving departments and agencies across the country.

That deal, Telus said, is worth as much as $200-million over the next four years.

The contract is expected to create as many as 200 jobs across Canada.

"This is clearly an important contract for Telus and one we look forward to implementing for the government of Canada," Darren Entwhistle, Telus' president and chief executive, said in a statement.

"Not only is this a significant national data contract with the government of Canada, it demonstrates execution on accelerating our national data and IP [Internet protocol] strategy."

Telus will provide the design, engineering, implementation, operation and maintenance of network services, which will link 650 locations across Canada through a high-speed data network.

In a separate statement, Telus also said it has struck a deal to buy Toronto-based Daedalian eSolutions. Telus has offered 17-cents a share for the company in an all-stock deal worth a total of $29-million.

Founded 20 years ago, Daedalian has more than 200 employees. Revenue in fiscal 2000 were about $22-million. The company's clients include Bank of Montreal, the City of Toronto and several Ontario government ministries.

Daedalian provides customized Internet applications, e-commerce solutions, systems integration and development, hosting, data warehousing and managed business services.

Daedalian's operations will become part of Telus Enterprise Solutions, the company's e-business unit.

The deal is expected to close in June.

Telus has been expanding beyond its western base, looking to make more acquisitions in central Canada as it strives to compete with Bell Canada.