Kenyan mobile operators Safaricom and Airtel have signed an agreement to acquire the telecom business of yuMobile for $120 million, it was announced on Monday.

yuMobile is owned by Essar Telkom, and is Kenya's third largest operator with a market share of 8.2%.

According to a press statement, the binding agreement will see Safaricom take over Essar Telecom Kenya Limited's (ETKL) network, IT and office infrastructure.

Meanwhile Airtel will acquire yuMobile subscribers, the statement noted.

The statement further reveals that the transaction has received approval from the Communication Authority (CA) in Kenya, subject to all parties involved in the transaction meeting certain pre-conditions.

The transaction is expected to be filed with the Competition Authority of Kenya (CAK) for approval.

yuMobile's chief executive officer Madhur Taneja said, "We would like to reassure our customers that they will continue enjoying our products and services uninterrupted. We have structured the transaction such that our customers will not need to change their mobile numbers or sim cards, post this transaction."

Taneja also added that close to 90% of the yuMobile's employees will be absorbed by Safaricom and Airtel.

Essar expects the transaction to conclude during the fourth quarter of 2014.