When the federal government launched its spectrum auction several years ago, one of the goals was to expand the number of players in Canada’s mobile telecommunications arena, and increase competition. It succeeded in drawing several new players into the market, but several of them are now up for sale and one of them – Mobilicity – has found a buyer.
Mobilicity announced Thursday that it has entered into an agreement to be acquired by Telus Corp. in a deal worth $380 million. The deal will be subject to regulatory approval, and approval by Mobilicity’s debt holders.
William Aziz, Mobilicity’s chief restructuring officer said in a statement that the carrier “has been losing a significant amount of money every month. The financial strength of Telus will allow the business to be continued in a way that will benefit customers and employees. An acquisition by Telus is the best alternative for Mobilicity.”
Our colleague Howard Solomon from IT World Canada is covering the Mobilicity deal, and gathering reaction from company executives, analysts and stakeholders. Read his coverage at the link below.