news Bell to acquire The Source

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Bell to acquire The Source

Bell today announced it has agreed to acquire national consumer electronics retailer The Source for an undisclosed price in an effort in increase the growth of Bell's wireless, digital TV, Internet and home phone services.

In a written statement released after the stock markets closed, Bell says it plans for the Source to carry a full array of Bell consumer electronics and to sell the complete line Bell services by January 2010.



In one fell swoop, the takeover of the Source by Bell adds more than 750 stores across Canada to it's national distribution network. According to the company, more than 70% of Canadians live within five kilometres of stores operated or licensed by The Source.

The Source will operate as a separate division of Bell and will be led by Ron Cuthbertson, most recently the president of The Source.

For the record, Bell is acquiring substantially all of the assets of The Source, which was acquired by Circuit City Stores, Inc. in March 2004. On November 10, 2008, Circuit City voluntarily commenced bankruptcy proceedings under Chapter 11 of the United States Bankruptcy Code and The Source commenced a voluntary proceeding under the Companies' Creditors Arrangement Act (CCAA).

Subject to court approval and other customary conditions to closing, the transaction is expected to close in Q3 2009.
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