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.
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."
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.
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).