Thursday, 2 July 2009

Bell completes purchase of Virgin Mobile – Canada

Bell Mobility has announced that it has completed the CAD 142,000,000 (USD 122,000,000) purchase of the remaining 50% share of MVNO Virgin Mobile Canada. Bell Mobility already owned the other share of Virgin Mobile Canada, with the latest transaction making it the sole owner. The acquisition also includes a long-term licensing agreement for the use of the Virgin Mobile brand and the ability to gain access to Bell’s 3G network when it is completed.

Bell went on to say that it will install Robert Blumenthal as President and Chief Executive Officer of Virgin Mobile Canada, replacing the outgoing incumbent Andrew Black, and that its range of handsets will be sold in The Source retail stores from January 2010.

President and Chief Executive Officer of Bell, George Cope said: "The Virgin Mobile Canada team has built a unique wireless brand with special appeal to young Canadians and a reputation for outstanding service right across the country. This acquisition aligns perfectly with Bell's strategic imperative to Accelerate Wireless, and we look forward to assisting Virgin Mobile Canada in maximizing the network, product, global roaming and distribution advantages that come with being part of the broader Bell organization."

New Chief Executive Officer of Virgin Mobile Canada, Robert Blumenthal added: "I'm thrilled to be joining the Virgin Mobile Canada team as we build on our rewarding relationship with Bell Mobility and begin a new one with The Source. We think Virgin Mobile's youth-oriented brand fits very well with The Source's focus on young and tech-savvy consumers. On behalf of the entire Virgin Mobile Canada team, I would also like to thank Andrew Black for leading our organization to its position as the wireless brand of choice for youth in Canada. We look forward to building on that success as we enter a new era of wireless competition and opportunity."