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Telus signs deal to buy Mobilicity for $373M

TORONTO (AP) -- Canadian telecom company Telus has signed a deal to buy small wireless company Mobilicity for $373 million (CA$380 million).

Mobilicity said Thursday that a deal with Telus would ensure that its 250,000 customers would continue to get service without disruption.

The deal is subject to conditions including approval by the Competition Bureau, Industry Canada, and Mobilicity's debt holders. Telus says it will keep all 150 Mobilicity employees and integrate them into its operations if the deal is approved.

Mobilicity was part of a new wave of small wireless companies launched after the last wireless spectrum auction in Canada. However, the company has been losing money and launched a restructuring plan last month.

The companies say the entire purchase price will be used to satisfy Mobilicity's secured and unsecured debt.