|August 21, 2000|
TELUS And Clearnet To Create Canada's Largest Wireless Company
|In what will be the largest acquisition in Canadian telecommunications history, TELUS Corporation has agreed to offer to acquire all of the shares of national digital wireless company Clearnet Communications Inc.. The combined entity will be a leader in the fast-growing market for national wireless voice, data and Internet services. The combination of TELUS's and Clearnet's wireless operations will produce the largest wireless company in Canada in terms of annual revenue, customer growth and wireless spectrum position.|
The transaction, valued at C$6.6 billion, will unite Western Canada's leading wireless company with the country's most dynamic national wireless company. This deal is a major advance in building TELUS into the leading Canadian provider of advanced, integrated communications, with more than 1.8 million customers, a license to provide coverage to 30.7 million potential customers and existing digital network coverage for more than 21 million potential customers from coast to coast. George Cope, President and CEO of Clearnet, will assume leadership of the combined wireless entity as its President and CEO.
A Bold New Force in Canadian Telecommunications
"Wireless and IP applications are the two fastest-growing areas in telecommunications and their convergence will be the most significant event of the next decade for our industry. Our objective is to become the Canadian leader of this market," said Darren Entwistle, TELUS President and CEO. "This transaction will give us immediate national wireless coverage, which will serve as the foundation for the data and Internet strategy we are about to unveil.
"This deal is significant not only in its scale, but, more importantly, it signifies TELUS's strong commitment to becoming Canada's preeminent data and wireless communications company. And it indicates how TELUS will behave in the future. We will act quickly, decisively and responsibly, focusing on growth areas of our industry to add value for our shareholders."
George Cope, President and CEO of Clearnet, called the deal "an exciting and compelling opportunity for Clearnet shareholders, clients and employees to be part of a bold new force in Canadian telecommunications. Together, we will be able to dramatically expand our ability to fully exploit the opportunities in Canadian wireless.
"Our clients will greatly benefit from this transaction through access to a competitive and integrated mix of new and improved services, including bundled services and new data and Internet options. Joining forces with TELUS means we will have unparalleled human and financial resources to capitalize on the wireless revolution in voice, Internet and data services."