Canadian telecom giant Bell Inc. announced it plans to acquire The Source, a national electronics retailer owned by U.S.-based Circuit City. If approved, the acquisition will allow The Source to feature Bell’s product line in the stores.
Today Bell announced it will acquire The Source, an electronics retailer found across Canada. The buyout will let the telecom company carry the full array of Bell consumer services at The Source’s more than 750 stores across Canada. Bell’s product line includes mobile and home phones, TV services, and high-speed Internet.
The Source will continue to operate independently of Bell and will also maintain its stock of electronics and technology equipment.
George Cope, President and CEO of Bell and BCE, said in a press release: “With its strong national presence, brand, and management team, acquiring The Source represents a competitive and cost-effective approach to ensuring Bell’s leadership in delivering the best communications products to Canadians.”
Ron Cuthbertson, president of The Source, commented: “Combining Bell’s industry-leading roster of communications services with the brand, distribution presence, and consumer retailing expertise of The Source will contribute positively to the long-term growth of both businesses going forward.”
The Source and its parent company Circuit City have been enduring an uphill battle this past year. In November, Circuit City filed for Chapter 11 bankruptcy protection in order to help restructure its struggling retail business. In February, it announced would liquidate its 567 U.S. stores.
Bell’s acquisition price of The Source has not been made public, and the deal is still subject to court approval.
