Canada's BCE has signed a definitive deal to acquire Ziply Fiber, a fiber-focused operator serving parts of the Pacific Northwest in the US, for $3.6 billion in cash and $1.44 billion of debt. #pressrelease
November 4, 2024
BCE Inc. (TSX, NYSE: BCE), Canada's largest communications company , announced today that its wholly-owned subsidiary, Bell Canada (Bell), has entered into a definitive agreement to acquire Ziply Fiber, the leading fiber Internet provider in the Pacific Northwest of the United States, (the "Acquisition") for approximately C$5.0 billion in cash and the assumption of outstanding net debt of approximately C$2.0 billion to be rolled over at transaction close, representing a transaction value of approximately C$7.0 billion.
This transaction enhances Bell's growth profile and strategic position by giving it a foothold in the large, underpenetrated U.S. fiber market, while increasing its scale, diversifying its operating footprint and unlocking significant growth opportunities.
Ziply Fiber's focus on network technology and innovation has resulted in steady expansion of its footprint since 2020, with over 1.3 million fiber locations across four U.S. states and plans to reach more than three million locations in the next four years. Upon closing of this acquisition, Bell will be poised to expand its fiber footprint to over 12 million locations across North America by the end of 2028, reinforcing its position as the third-largest fiber Internet provider in North America.
The combination of Bell and Ziply Fiber will offer enhanced value for existing and new customers in both Canada and the United States as demand for faster, more reliable Internet and data services increases. Together, the two companies will bring a depth of management, product leadership and technological expertise, aligned on culture, vision and long-term strategy.
The Acquisition is expected to close in the second half of 2025, subject to certain customary closing conditions and the receipt of certain regulatory approvals. Once the transaction has closed, Ziply Fiber will operate as a separate business unit and will continue to be headquartered in Kirkland, Washington.
Read the full press release here.
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