Wireless services provider Public Mobile has been acquired by Thomvest Seed Capital Inc, the Toronto-based investment vehicle of Peter J. Thomson, and Cartesian Capital, a New York-based private equity firm.
With the acquisition, Thomvest and Cartesian invested the first tranche of a commitment to fully fund Public Mobile to a cash flow positive position, and Thomvest became the company’s controlling shareholder, the company said in a statement.
Thomvest is a venture capital firm committed to the success of its entrepreneur partners. Cartesian Capital Group is a global private equity firm that manages $2 billion in capital.
“Despite the current uncertainty in the Canadian wireless industry, Public Mobile’s strong performance and rapid growth continue to attract financial backing from blue chip investors. This financing is an enormous vote of confidence in Public Mobile’s business and a significant milestone in our company’s history,” said Alek Krstajic, Public Mobile’s founder and CEO.
“The support of Thomvest and Cartesian enables Public Mobile to continue the rapid expansion of our subscriber base from a strong and well-funded position,” Krstajic added.
“Thomvest’s strategy is to partner with entrepreneurs to build companies that transform their industries,” said Stefan Clulow, Managing Director at Thomvest. “Circumstances in the Canadian wireless industry have created a window for Canada’s fourth wireless player to emerge. We are pleased to partner with Cartesian and the Public Mobile team to pursue this opportunity.”
Added Paul Pizzani, Partner at Cartesian: “In the coming months, the Canadian wireless industry will see consolidation, and an important spectrum auction. Public Mobile is well-positioned to grow in scale by pursuing these consolidation opportunities and by bidding for national spectrum in the 700 MHz auction.”
Public Mobile noted the transaction has received the continuing support and partnership of ZTE Corp and the Export-Import Bank of China (Exim).
Formed in 2008, Public Mobile provides unlimited talk, text, Android data services and Siren music to value conscious customers in Ontario and Quebec. There are no contracts, no credit checks and no surprises.
Public Mobile launched its network service in May 2010 in Toronto and in June 2010 in Montreal. The company is building its network from Windsor to Quebec City. Its licence covers an area reaching 19 million Canadians.
For further details visit www.publicmobile.ca.