Shaw Communications buying Wind Mobile in deal valued at $1.6 billion

That the wireless startup is being acquired for $1.6-billion makes it eye-popping news.

The Calgary-based telecommunications company says it will acquire the country’s fourth-largest mobile operator by subscribers, pending a number of regulatory approvals, including the Competition Bureau and the Ministry of Innovation, Science & Economic Development.

The deal is expected to close during the third quarter of the 2016 fiscal year.

Wind Mobile, which is based in Toronto, has about 940,000 subscribers in British Columbia, Alberta and Ontario.

Canada’s previous government had opposed Canada’s three largest wireless providers – Telus Corp (T.TO), Rogers Communications and BCE Inc’s (BCE.TO) Bell – buying smaller players.

CIBC World Markets Inc. and TD Securities Inc. acted as financial advisors to Shaw in connection with the Transaction and Dentons Canada LLP provided legal advice.

Canadian communications and media company Shaw Communications Inc.

About WIND MobileWIND Mobile is Canada’s alternative wireless carrier, dedicated to bringing affordable wireless service to Canadians by offering simple and fair unlimited plans with no overage charges and no hidden fees.

A conference call on the transaction is coming tomorrow morning at 8 a.m. ET, along with a presentation on the deal.

Shaw had bought spectrum that was set aside for new entrants to the wireless industry in 2008, but never built out that capacity. Shaw Business Network Services provides business customers Internet, data, WiFi, telephony, Video and fleet tracking services. Learn more about WIND Mobile at WINDmobile.ca or follow online at facebook.com/WINDmobile or twitter.com/WINDmobile.

The move comes a little as a suprise, as Shaw announced in 2013 it was abandoning plans for a cellular division, and would focus instead on cheaper Wi-Fi options for its mobile customers.