Telus preparing to buy Mobilicity
Posted May 16, 2013 6:18 am.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – Telus has a deal to buy Mobilicity, one of several smaller rivals that came on the scene in recent years.
The price is $380 million.
The deal is subject to conditions, including approval by the Competition Bureau, Industry Canada, and Mobilicity’s debtholders.
Mobilicity says a deal with Telus would ensure that its 250,000 customers would continue to get service without disruption.
If the deal is approved, Telus says it will keep all 150 Mobilicity employees and integrate them into its operations.
Mobilicity was part of a new wave of small wireless companies launched after the last wireless spectrum auction in Canada. However, the company, which has been losing money, launched a restructuring plan last month.
The companies say the entire purchase price will be used to satisfy Mobilicity’s secured and unsecured debt.
Other small players are also on the market.
