PICKERING, Ontario, Canada-Clearnet Communications Inc. announced it plans to acquire Mobilair Communications, the wireless communications division of Autostock Inc., to expand its MiKE specialized mobile radio network throughout Quebec.
Clearnet said it expects to pay about $19.5 million, mostly in cash, for Mobilair. The specific price depends on “values determined as of the closing date,” which is expected to be on or about Feb. 28. While Autostock’s primary business is automotive after-market sales, Mobilair operates SMR networks throughout Quebec and distributes wireless two-way radio products.
“Clearnet has effectively tripled its direct distribution capability in this very important market,” commented George Cope, Clearnet’s president and chief executive officer. The company said it has budgeted to invest more than $240 million in Quebec by the middle of 1998.
MiKE is an enhanced SMR business communications service that Clearnet introduced last September. Using Motorola Inc.’s integrated Digital Enhanced Network technology, MiKE integrates mobile voice, dispatch and private call two-way radio, alphanumeric paging and messaging in one handset.
The ESMR service is currently available in Ontario and Quebec, and Clearnet plans to expand west throughout the year.
Clearnet also said it plans to increase Mobilair’s current staff of 130 people to 200 people, in 19 locations throughout Quebec.
While MiKE is targeted toward business users, Clearnet’s package is very much in line with consumer marketing. The customer can choose from three calling plans and receive service without a contract or activation fee. MiKE also is billed per second and customers can lease or buy a phone, said spokeswoman Pym Buitenhaus.
Ontario-based Clearnet also holds a 30-megahertz license for personal communications services, which will be launched in Canada’s main urban centers by the middle of the year. Clearnet plans to use Code Division Multiple Access technology.
