Bell Mobility has completed its acquisition of the 50% stake in Virgin Mobile Canada for $142m.
It has also acquired all of the assets of the Canadian electronics retailer – The Source – for $135m. The Source had been acquired by Circuit City Stores in March 2004, for approximately $335m and operated until today as The Source by Circuit City.
George Cope, president and chief executive officer of Bell and BCE, said: With its approximately 750 high-traffic locations from coast to coast and clear track record of success in consumer retail, acquiring The Source is a far faster and more cost-effective approach to increasing Bell’s national distribution footprint than building out new retail locations.
The company said that it would offer Virgin Mobile products and services through The Source retail locations in January 2010. Bell has also appointed Robert Blumenthal as the president of Virgin Mobile Canada.
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Cope said: This acquisition aligns perfectly with Bell’s strategic imperative to Accelerate Wireless, and we look forward to assisting Virgin Mobile Canada in maximising the network, product, global roaming and distribution advantages that come with being part of the broader Bell organisation.
While Virgin Mobile Canada will have access to Bell’s existing and new wireless networks and share common distribution in high-traffic retail locations. It will also continue to operate independently of Bell with its own brand, customer service operations and executive leadership team, Bell said.
