Canada's Shaw Communications to buy Wind Mobile in deal valued at C$1.6 billion
(Reuters) - Canada's Shaw Communications Inc SJRb.TO SJR.N said on Wednesday it had agreed to buy Wind Mobile, the country's fourth-largest wireless provider, and its parent company in a deal that gives it a much-needed presence in the cellular market.
Calgary-based Shaw said the deal valued Wind at C$1.6 billion ($1.16 billion).
The takeover follows Rogers Communication's C$465-million purchase of smaller rival Mobilicity in a series of deals that allowed Wind to snap up a suite of airwaves at a discount price.
The company's chief executive, Brad Shaw, said the deal boosts its growth prospects and offerings to existing clients.
Shaw has struggled against Vancouver-based Telus Corp (T.TO: Quote) because it has so far not been able to bundle wireless into its television, landline and Internet offerings.
Wind said earlier this month that it had closed a new C$425 million debt facility to help it upgrade its network to the latest high-speed LTE technology.
Wind has roughly 940,000 subscribers across Ontario, British Columbia and Alberta, but lags far behind the three big Canadian players, Telus, Rogers Communications Inc (RCIb.TO: Quote) and BCE Inc's (BCE.TO: Quote) Bell, each of which has at least 10 times the subscribers.
(Reporting by Julie Gordon in Vancouver, Alastair Sharp in Toronto and Shubhankar Chakravorty in Bengaluru; Editing by Alan Crosby)
© Thomson Reuters 2017 All rights reserved.