Canadian consolidation as Shaw buys Wind for $1.2 billion

Canadian cable company Shaw Communications is set to significantly enhance its multiplay offering with the acquisition of Wind mobile.

According to Ovum’s WCIS service Wind is a relatively minor player in the Canadian mobile market with around a 3% share of subscriptions, however it does have a decent chunk of spectrum across the country (see investor presentation slide below), which is presumably the primary justification for the C$1.6 billion (~US$1.2 bn) price tag.

“The global telecom landscape is quickly evolving towards ‘mobile-first’ product offerings as consumers demand ubiquitous connectivity from their service providers,” said Shaw CEO Brad Shaw. “The acquisition of Wind provides Shaw with a unique platform in the wireless sector which will allow us to offer a converged network solution to our customers that leverages our full portfolio of best-in-class telecom services, including fibre, cable, wifi, and now wireless.

“This transaction represents a transformational step in the history of Shaw and we are excited about our future growth prospects in mobile. This growth will be accelerated by combining Shaw’s existing customer relationships, trusted brand and wireline and WiFi infrastructure with WIND’s impressive asset base, including its existing spectrum position and mobile network.”

Current Wind CEO Alek Krstajic will join Shaw to head up its wireless operations. “We believe the combination of Shaw and Wind creates a wireless leader with immediate benefits for our customers and employees, giving them more choice, capabilities and opportunities to stay connected,” he said.