Bell Canada has agreed to buy the retail chain The Source from Circuit City in order to expand its sales network. In addition to its range of consumer electronics products, The Source plans to carry the full array of Bell consumer services at its more
than 750 stores across Canada, including Bell Mobility, Solo Mobile and possibly Virgin Mobile products and services, Bell TV's HD services, high-speed internet and Bell Home Phone products, by January 2010. The Source will continue to operate independently from Bell following its acquisition and will maintain its national brand, product range and management team, to be led by Ron Cuthbertson, president of The Source. The Source generated revenues of CAD 643 million in 2008 and EBITDA of CAD 27 million. Bell said the takeover offered a quicker way to expand distribution than building out its own stores. More than 70 percent of Canadians live within 5km of stores operated or licensed by The Source, and more than 80 million consumers shop at The Source each year. Subject to court approval, the transaction is expected to close in Q3. No financial details were released.
