Shaw Communications is diversifying into mobile, announcing a C$1.6 billion (€1 billion) takeover deal for mobile network operator Wind Mobile on Wednesday.
The Canadian cable TV, broadband and media company said the acquisition reflects the trend towards mobile-first product offerings.
"The acquisition of Wind provides Shaw with a unique platform in the wireless sector which will allow us to offer a converged network solution to our customers that leverages our full portfolio of best-in-class telecom services, including fibre, cable, WiFi, and now wireless," said Shaw CEO Brad Shaw.
Wind brings with it a spectrum portfolio and mobile network, to add to Shaw’s existing customer relationships, strong brand, and wireline and WiFi infrastructure, the chief executive added.
Wind is one of a number of smaller mobile oper ators in Canada that are struggling to compete with the scale of the big three: Rogers Communications, Bell Canada, and Telus. Combining its assets with the strength of a major fixed-line player like Shaw will give the merged entity a credible position in the market, particularly in light of the growing trend towards quad-play services.
The acquisition comes just under six months after Rogers Communications announced the acquisition of Mobilicity, another small mobile operator in Canada that has been operating under court protection for a couple of years. It completed the deal in July for C$443 million in cash, gaining 154,000 customers and various AWS-1 spectrum licences.
Wind has around 940,000 customers in Ontario, British Columbia and Alberta , and holds 50 MHz of mobile spectrum in each of the three regions. It is in the process of rolling out LTE infrastructure, and this summer sold off AWS-1 frequencies in Manitoba and Saskatchewan to MTS-Allstream and SaskTel respectively, with a view to ploughing the proceeds into 4G.
The firm is currently led by CEO Alek Krstajic who, along with his team, will remain with the company following the closure of the transaction.
"We believe the combination of Shaw and Wind creates a wireless leader with immediate benefits for our customers and employees, giving them more choice, capabilities and opportunities to stay connected," said Krstajic.
The deal requires various regulatory approvals, including the green light from the Competition Bureau and the Ministry of Innovation, Science & Economic Development (formerly Industry Canada). The companies expect it to close in the third quarter of fiscal 2016.
