In a transaction approved by an Ontario court, Rogers Communications will purchase Mobilicity in a deal with a value of $465 million.
Under the deal, Rogers will sell some of Mobilicity’s spectrum to Wind Mobile and take on the company’s debt and repay creditors. Mobilicity has 150,000 remaining customers whereas Wind has attained approximately 800,000 customers.
The purchase price is partially offset by $175 million in tax losses attained by Rogers over the years.
“The transaction with Rogers provides the best possible outcome for Mobilicity’s customers, dealers and employees,” said Anthony Booth, President of Mobilicity, in a statement.
“Rogers ensures certainty of service for Mobilicity customers, provides a great network, national coverage and high quality products and services.”
The sale has received one of two necessary federal government level approvals. Industry Canada has green lighted the transaction, but final approval is still required from the Competition Bureau.
The financially troubled Canadian wireless provider has been under creditor protection since September 2013. Earlier this month, it was announced that both Telus and Rogers were bidding for the takeover of the company.
In addition to the Mobilicity takeover, Rogers also announced that it would pay $100 million to Shaw Communications to attain the Calgary-based company’s unused wireless spectrum.
“We’re basically adding multiple lanes on our wireless highway in three key markets overnight,” said Guy Laurence, President and CEO of Rogers Communications, in a statement. “This means faster speeds and better quality for our customers as they use more and more mobile video.”