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Mobilicity has been under creditor protection since September 2013.

Mobilicity says it has agreed to be purchased by Telus Corp. (TSX:T) for $350 million.

Mobilicity says the proposed sale is subject to approval by the Ontario Superior Court of Justice, the Competition Bureau, Industry Canada, and Mobilicity's debtholders.

Telus has twice tried to buy struggling Mobilicity, but both times the deal was rejected by Industry Canada.

"We will not approve spectrum-transfer requests that decrease competition in our wireless sector," Jake Enwright, a spokesman for Industry Minister James Moore, said Friday.

This time, however, Mobilicity says it believes the deal will satisfy the federal agency's criteria and will not affect competition in the Canadian wireless sector.

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Telus has twice tried to buy struggling Mobilicity, but both times the deal was rejected by Industry Canada. (Chuck Stoody/Canadian Press)

Mobilicity has been operating under creditor protection since September 2013.

The company has been seeking a buy and had contacted 25 organizations about submitting bids. Five bids were received by the Dec. 16, 2013 extended deadline and only the Telus bid was deemed acceptable.