Public Mobile, one of the new-entrants in Canada’s mobile market, has been acquired by investment firms Thomvest Seed Capital and Cartesian Capital, with a “commitment to fully fund Public Mobile to a cash-flow positive position”.

The news came shortly after a deal was blocked which would have seen Mobilicity, another small player in the market, acquired by big-three player Telus Mobility.

According to Reuters, Alek Krstajic, founder and CEO of Public Mobile, said that Canada would benefit from consolidation among the smaller players, but that Public Mobile may not take on a lead role in this process.

“We see ourselves having a place in consolidation, it’s not clear who the consolidator is yet. The consolidator will be one who brings the money,” he noted.

Earlier this week, fellow Canadian new entrant Wind Mobile suggested it may look again at Mobilicity, after the failure of the Telus deal.

Canada’s mobile market is dominated by Rogers Wireless (9.38 million subscribers), Telus Mobility (7.7 million) and Bell Mobility (7.67 million), according to Wireless Intelligence figures.

Public Mobile has 384,000 subscribers.

Thomvest, the investment vehicle of Canadian entrepreneur Peter Thomson, will be Public Mobile’s controlling shareholder.

Public Mobile also noted that the deal has “received the continuing support and partnership of ZTE and the Export-Import Bank of China”.