Shaw Communications announced today that it has agreed to acquire Wind Mobile.
The value of the transaction is $1.6 billion.
“The global telecom landscape is quickly evolving towards ‘mobile-first’ product offerings as consumers demand ubiquitous connectivity from their service providers,” said Chief Executive Officer, Brad Shaw. “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.”
The Transaction is subject to the receipt of certain approvals, including those from the Competition Bureau and the Ministry of Innovation, Science & Economic Development (formerly Industry Canada) and court approval of the plan of arrangement.
“This transaction represents a transformational step in the history of Shaw and we are excited about our future growth prospects in mobile,” added Shaw. “This growth will be accelerated by combining Shaw’s existing customer relationships, trusted brand and wireline and WiFi infrastructure with Wind’s impressive asset base, including its existing spectrum position and mobile network.”
Wind has 940,000 subscribers in Canada. In calendar year 2015, Wind is expected to generate $485 million in revenue.
“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,” Wind Chief Executive Officer Alek Krstajic said. “With Shaw’s long-term commitment, customer focus and breadth of product offering, this transaction enables us to enter into a new phase of growth.”