TORONTO – Distributel Communications has firmed up its foothold in western Canada after announcing Wednesday that it is buying some of the assets of the Navigata-Westel division of TNW. Financial terms of the deal were not disclosed.
In November 2016, a numbered company formerly known as Téliphone Navigata-Westel Communications, a subsidiary of TNW Networks, filed for court protection under the Companies' Creditors Arrangement Act (CCAA) in the Supreme Court of British Columbia. Distributel said that it closed an agreement with monitor Ernst & Young Inc. on September 28 to acquire selected assets of TNW and take over associated operations.
The company will now operate under a new, wholly owned subsidiary of Distributel named Navigata Communications Limited. The move will not impact the ongoing delivery of services to customers.
Distributel CEO Matt Stein said that the acquisition is “critical" because it gives Distributel a substantial presence in Western Canada as well as "new west coast network assets".
"This asset acquisition is good news for TNW customers," added Stein, in the announcement. "With the strength of the Distributel organization, we will provide much needed stability to ensure the continuation of operations and will invest the financial and human resources to grow the newly combined business."
Stein added that Distributel is focused on consolidation “in order to create a strong, competitive telecom choice for all Canadians”. The company bought long-distance provider Yak Communications from Globalive Capital in September 2016.
Residentially, Distributel offers high-speed Internet, television, home phone and long distance services in Ontario, Quebec, Alberta and British Columbia. Commercially, via its business services division ThinkTel, it provides advanced voice and data services for the SMB, Enterprise and Wholesale markets throughout Canada.
