TELUS agrees to acquire Mobilicity
Canadian operator TELUS has agreed to purchase Mobilicity for C$380 million.
Mobilicity approached TELUS for a possible acquisition in an effort to address its consecutive monthly deficits. The company has now begun proceedings with the Ontario Superior Court of Justice.
“Mobilicity has been losing a significant amount of money every month,” said William Aziz, chief restructuring officer, at Mobilicity.
“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,” he added.
The company, also known as Dave Wireless, has ensured its 250,000 customers would receive continued service as the deal goes through.
Mobilicity’s 150 employees will be incorporated into TELUS during the integration period of a few months, should the deal receive regulatory approval from Competition Bureau and Industry Canada.
Mobilicity debt holders will also have to approve the deal.