Several years after a federal government spectrum auction led to the expansion of Canada’s mobile telecommunications industry with several new smaller players entering the market, a period of contraction and consolidation may be beginning.
One of those young upstarts, Mobilicity, announced Thursday that it has entered into an agreement to be acquired by one of the dominant incumbents, Telus, in a deal worth $380 million. The transaction is of course subject to debt holder and federal regulatory approval.
“A concern for our customers and employees led us to approach Telus, which has a reputation for a strong customer focus, as evidenced by their industry leading client loyalty,” said Mobilicity president Stewart Lyons, in a statement. “I am confident Telus will look after our employees and our customers, mitigating any disruption to their service, while offering the best outcome for all stakeholders.”
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.