TORONTO – Canada’s next national wireless carrier, Globalive Communications Corp., has purchased long-distance operator Telehop Communications Inc. for nearly $10.7 million.
Globalive, which wound up with 30 licenses on Monday at the end of Industry Canada’s wireless spectrum auction, will acquire all outstanding Telehop stock at 80 cents a share. The deal has the unanimous endorsement of Telehop’s board but is still subject to the completion of due diligence by Globalive.
Jaguar Financial Corp., had also shown interest in purchasing Telehop, but recently waived its commitment to purchasing the company for 50 cents per share.
"Telehop is a good company and we look forward to the asset joining the Globalive family. Hersh Spiegelman is one of the pioneers of 10-10-xxx services in Canada and we wish to thank him for his contribution to the industry,” said Anthony Lacavera, chairman and chief executive officer of Globalive in a statement.
Telehop’s revenues fell below $4.4 million in the first quarter this year, down 11% from a year earlier, and the company posted a $200,000 net loss. The results were down from a year ago, when it had net earnings of $200,000 and revenues of $4.9 million.
