Canada’s second biggest mobile operator, Telus, is set to acquire new entrant Mobilicity for CA$380 million ($371 million), picking up 250,000 customers in the process.

The company is positioning the deal – which still requires regulatory approval – as a way of ensuring continuity of service to Mobilicity’s subscribers. But it will also enable it to bolster its position in the market.

In a statement, Stewart Lyons, president of Mobilicity, said: “I am confident Telus will look after our employees and our customers, mitigating any disruption to their service, while offering the best outcome for all stakeholders.”

Mobilicity started a restructuring process in April 2013, with two plans of actions considered – a recapitalisation, and a possible sale.

William Aziz, chief restructuring officer of Mobilicity, said: “Mobilicity has been losing a significant amount of money every month. The financial strength of Telus will allow the business to be continued in a way that will benefit customers and employees.”

According to Wireless Intelligence figures, Canada’s largest operator, Rogers Wireless, has 9.4 million subscribers, ahead of Telus, which has 7.7 million. Third-placed Bell Mobility is close behind Telus, also with 7.7 million subscribers (after rounding).

Mobilicity is one of a number of tier-two players in the country.

Telus and Mobilicity said that they anticipate “an expeditious legal and regulatory review” in the light of Mobilicity’s ongoing woes.