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GLENTEL acquires Verizon retailer Diamond Wireless for $50m

Published: 13:18 16 Aug 2010 EDT

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Telecommunications services and solutions provider GLENTEL Inc. (TSX: GLN) has agreed to purchase Diamond Wireless, a mall-based Verizon Wireless retailer based in Salt Lake City, Utah, for approximately USD $50.5 million. GLENTEL will acquire an 81.5% interest when the deal closes, while the remaining 18.5% minority stake will be bought by GLENTEL in the future under certain terms and conditions.

The transaction will be funded in cash, short-term invesments, as well as a $35 million loan.

Diamond Wireless operates 128 stores (118 in malls) in Washington, Oregon, Wyoming, Utah, Colorado, California, Arizona, Nevada, New Mexico, Texas and Hawaii, with a team of 750 associates. It was founded in 2000 by brother and sister Troy Crosland and Danielle Nielson.

"Diamond has consistently delivered strong growth in sales and profitability, new store openings, and solid same-store sales growth year-over-year similar to the performance of our retail division in Canada," said GLENTEL`s president and CEO Thomas Skidmore.

The Diamond acquisition is expected to help GLENTEL in its wireless retail mall expansion plan in the United States, GLENTEL said.

The existing management team of Diamond will remain in place.

"Diamond Wireless will be a significant contributor to our earnings and shareholder value in the 4th quarter," Skidmore added.

The transaction is expected to close in October this year subject to certain customary closing conditions.

GLENTEL provides telecommunications services and solutions in Canada and the United States. Founded in 1963 and headquartered in Burnaby, British Columbia, GLENTEL comprises two operating divisions - retail and business - that service thousands of consumers and commercial telecommunications customers.  The company is the largest multi-carrier mobile phone retailer in Canada and offers wireless service, rental equipment, satellite and terrestrial network systems, tower sites, and wireless asset monitoring. It operates more than 280 locations across Canada located in retail malls and high pedestrian-traffic street-front locations, Costco Wholesale stores, and business centers.

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