TELUS has agreed to pay $380 million for Mobilicity, a wireless provider that formed in 2008.

The deal requires approval from several sources including the Competition Bureau, Industry Canada, and Mobilicity's debtholders.

Service to Mobilicity's 250,000 customers will be not be disrupted assures Stewart Lyons, Mobilicity President.

"A concern for our customers and employees led us to approach TELUS, which has a reputation for a strong customer focus, as evidenced by their industry leading client loyalty. I am confident TELUS will look after our employees and our customers, mitigating any disruption to their service, while offering the best outcome for all stakeholders."

The deal was spurred by Mobilicity's continuing financial losses and the entire $380 million will be used to satisfy the privately-held company's secured and unsecured debt.

All 150 Mobilicity employees will be retained by TELUS, which recorded annual revenues of $11 billion in 2012 from 7.7 million wireless subscribers, 3.4 million wireline network access lines, 1.4 million Internet subscribers and 712,000 TELUS TV customers.

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