Burnaby, British Columbia -
, an operator of 280 wireless retail outlets in Canada, will buy an 81.5 percent stake in Diamond Wireless, the operator of 128 stores that exclusively sell Verizon Wireless service in Western and Southern states.
The transaction is expected to close on Oct. 1 at a purchase price of $50.5 million.
Glentel also agreed to purchase the remaining stake in Salt Lake City-based Diamond in the future under certain terms and conditions.
Glentel said Diamond would remain a Verizon-exclusive agent and that existing management would be retained. Diamond Wireless operates 128 stores (118 in malls) in Washington, Oregon, Wyoming, Utah, Colorado, California, Arizona, Nevada, New Mexico, Texas and Hawaii. In Canada, Glentel operates Wireless Wave stores.
Glentel said it made the move in part because of growing competition from Canadian carriers that have become more aggressive in selling consumers direct, in part by purchasing Canadian retail chains.