Shaw Communications (TSX:SJR.B) has agreed to acquire a 100% interest in Mid-Bowline Group and its wholly owned subsidiary WIND Mobile for approximately $1.6 billion. The acquisition is intended to let Shaw offer a converged network solution that leverages fiber, cable, WiFi and wireless. Shareholders of Mid-Bowline Group have approved the transaction, and closing is expected during the third quarter of fiscal 2016.
Shaw CEO Brad Shaw said, "This transaction represents a transformational step in the history of Shaw, and we are excited about our future growth prospects in mobile. 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 serves approximately 940,000 subscribers across Ontario, British Columbia and Alberta with 50 MHz of spectrum in each of those regions. The company is scheduled to upgrade to 4G LTE services by 2017. WIND's current management team is led by CEO Alek Krstajic. Krstajic and his team will remain with the company.