Telus signs deal to buy small wireless company Mobilicity for $380 million

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A Telus employee speaks to customers at a Telus Mobility sales location in Toronto, on May 5, 2011. Telus is preparing to buy Mobilicity for 80 million, if it gets approvals from federal authorities. THE CANADIAN PRESS/Darren Calabrese

TORONTO – Telus (TSX:T) has signed a deal to buy Mobilicity for $380 million.

The deal is subject to conditions including approval by the Competition Bureau, Industry Canada, and Mobilicity’s debtholders.

Mobilicity says a deal with Telus would ensure that its 250,000 customers would continue to get service without disruption.

If the deal is approved, Telus says it will keep all 150 Mobilicity employees and integrate them into its operations.

Mobilicity was part of a new wave of small wireless companies launched after the last wireless spectrum auction in Canada.

However, the company, which has been losing money, launched a restructuring plan last month.

The companies say the entire purchase price will be used to satisfy Mobilicity’s secured and unsecured debt.

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