Rogers Communications has brokered a deal to acquire 100% of struggling rival Mobilicity in a move that looks set to finally bring consolidation to Canada’s mobile market.
The deal will form part of a series of transactions that will also see Rogers acquire AWS-1 spectrum from Shaw Communications and divest certain AWS-1 frequencies to Wind Mobile.
The Ontario Superior Court of Justice has given the go-ahead for Rogers to acquire Mobilicity for C$465 million, subject to certain adjustments, Mobilicity announced on Wednesday. Mobilicity has been operating under court protection for the best part of two years and has been seeking a buyer for even longer.
"I ‘m pleased that, following a robust sale and bidding process, we were able to agree on a purchase price to complete a going-concern sale that addresses the needs of a number of stakeholders," said William Aziz, Mobilicity’s chief restructuring officer, in a statement.
"I thank subscribers, employees, dealers, suppliers and creditors for their continued support of Mobilicity throughout the restructuring process," he added.
In a separate announcement, Rogers said it has agreed a purchase price of $440 million for Mobilicity, a figure that is offset by tax losses valued at around $175 million.
Rogers talked up the benefits the addition of Mobilicity and its assets will bring to the company.
"We’re basically adding multiple lanes on our wireless highway in three key markets overnight," said Rogers CEO Guy Laurence. "This means faster speeds and better quality for our customers as they use more and more mobile video."
As previously announced, Rogers will pay $100 million for unused AWS-1 spectrum from Shaw, in addition to the down payments it made when it first brokered the deal two and a half years ago.
"We’re pleased to have worked with the government to put this unused valuable resource to work," said Laurence. "We got the spectrum we needed where we needed it for our customers."
The purchase of Mobilicity is subject to certain approvals, including that of the Competition Bureau. Industry Canada has already given the green light to the various transactions.
Once it has taken ownership of the spectrum from Mobilicity and from Shaw, Rogers will enter into a spectrum swap with Wind Mobile in Southern Ontario, as well as selling some AWS-1 assets to Wind in a number of areas.
