TELUS Enters Agreement to Acquire Mobilicity

May 16, 2013 by
DAVE Wireless today announced that it has entered into an agreement with TELUS for the sale of Mobilicity.

Mobilicity customers will soon be TELUS customers if the transaction is approved.

According to a press release from CNW, "Data & Audio-Visual Enterprises Holdings Inc. and its affiliates (collectively, Mobilicity) today announced that it has entered into an arrangement agreement (the Arrangement Agreement) with TELUS Corporation (TELUS) to provide for the sale of Mobilicity as a going concern for a purchase price of $380 million, subject to a working capital adjustment."

TELUS' press release states, "The agreement between TELUS and the company is subject to conditions including approval by the Competition Bureau, Industry Canada, and Mobilicity’s debtholders."

This doesn't come as much of a surprise - in February, Mobilicity announced new financing, in early April they withdrew from the CWTA (Canadian Wireless Telecommunications Association), and in late April they started a restructuring process. In short, Mobilicity has been bleeding money.

If the deal is approved, current Mobilicity customers should receive no service interruption (for the short term, anyhow). As for employees, TELUS states "TELUS will retain all 150 Mobilicity employees as it integrates the Mobilicity operation into TELUS over the coming months. The employees would have the opportunity to review and secure permanent, long term roles with TELUS."

You can read the entire acquisition plan (188 pages) here (PDF).

Posted in: Industry News, Mobilicity, TELUS