VICTORIA, BC and WOODSTOCK, NB – Xplornet Communications has acquired YourLink’s Internet services operations in Saskatchewan from Vecima Networks in an all-cash deal valued at $28.75 million.
YourLink, which provides high-speed wireless Internet to rural and remote communities, will continue to operate and deliver services in Saskatchewan while integrating operations into Xplornet’s regional and national delivery teams, reads Monday’s news release.
Rural-focused Internet service provider Xplornet said that the deal accelerates its ongoing expansion in that province.
"This acquisition will increase our fixed wireless broadband footprint in Saskatchewan and support Xplornet's mission to make affordable, fast and reliable broadband Internet services available to rural Canadians", said Xplornet president and CEO Allison Lenehan, in the release. "We believe this transaction will allow us to provide even more value for YourLink customers, and we look forward to serving them as new Xplornet customers in the years ahead."
Vecima, which sold YourLink’s British Columbia assets to Telus last October, said that the first closing of the transaction is scheduled to occur by the end of this week for $20 million. The final closing of $8.75 million is expected to occur before the end of Q2 calendar 2017, subject to all requisite regulatory approvals, including the transfer of radio spectrum licenses.
"Our strategic priority over the past 5 years has been to monetize non-core assets and focus on our core technology business”, added Vecima president and CEO Sumit Kumar, in that company’s statement. “This sale marks the culmination of a multi-year effort where we have successfully created additional shareholder value through the sale of excess real estate, radio spectrum and, in the last 6 months, both BC Cable and this transaction. We are confident that our vision to extend the reach of broadband to more people in Saskatchewan will now be pursued by a highly focused national broadband service provider that is dedicated to building a stronger, more connected digital Canada."
