Bell (TSX: BCE) announced November 28 it’s buying Burnaby-based Glentel (TSX: GLN) for $670 million.
Glentel, Canada’s largest independent phone retailer with about 500 locations, owns the Wirelesswave and T-Booth brands that are a mainstay at malls throughout the country.
The acquisition gives Bell a foothold in the United States, where Glentel operates more than 700 outlets under the Wireless Zone and Diamond Wireless banners.
Those companies account for two out of the six national premium retailers Verizon Wireless (NYSE:VZ) relies on for sales.
It’s an unlikely partnership between Bell and Verizon following speculation in the summer of 2013 the U.S. wireless carrier would be making an entry into the Canadian market.
Bell, Rogers (TSX:RCI) and Telus (TSX:T) soon launched an ad campaign, warning Verizon’s presence in Canada would be “unfair” and would cost Canadians jobs. Verizon eventually announced it would not be pursuing the Canadian market.
Although the acquisition of Glentel gives Bell a retail presence in the U.S., the carrier won’t be gaining any wireless infrastructure.
Glentel sold its tower business assets to SBA Communications in 2012 for $12 million.
“This transaction secures continued access for consumers to the convenient, high-quality customer experience offered by Glentel retail brands,” Bell Mobility president Wade Oosterman said in a statement.
"Bell is ready to compete for their business."
With revenue of nearly $1.4 billion in 2013, Glentel ranked as the 14th largest publicly traded company in B.C. this year, according to BIV research.
The company, which has a worldwide staff of 4,700, was founded in 1963.
As of press time, Glentel stock was up more than 102% to $25.80 on Friday upon news on the acquisition.
