MONTREAL—BCE, Canada’s largest telecom company, is expanding into the U.S. with a deal by its Bell Canada subsidiary to acquire Ziply Fiber, a fiber internet provider in the Pacific Northwest, for about $5.05 billion.
Ziply Fiber has steadily expanded its footprint since 2020, with over 1.3 million fiber locations (i.e. its fiber network passes about 1.3 million places that could become customers) across Montana, Idaho, Oregon and Washington. It plans to reach more than 3 million locations in the next four years.
Once the transaction has closed, Ziply Fiber will operate as a separate business unit and will continue to be headquartered in Kirkland, Washington.
BCE paid C$5.0 billion in cash ($3.65 billion) and assumed about C$2.0 billion ($1.4 billion) in outstanding net debt, for a total price of C$7.0 billion ($5.05 billion).
"This acquisition marks a bold milestone in Bell's history as we lean into our fiber expertise and expand our reach beyond our Canadian borders,” BCE and Bell Canada president and CEO Mirko Bibic said. “Fiber is at the heart of what we do, and we're proud to connect people and businesses and enable them to do more through our fiber networks. By bringing together Bell and Ziply Fiber's exceptional talent, we'll accelerate our growth while continuing to deliver significant value for our customers and shareholders.”
Upon closing of this acquisition, Bell will be poised to expand its fiber footprint to more than 12 million locations by the end of 2028, reinforcing its position as the third-largest fiber Internet provider in North America, the company said.
“Bell’s leadership and vision aligns perfectly with our commitment to improve the connected experiences of our communities through fast, reliable fiber Internet and a refreshingly great experience,” Ziply Fiber CEO Harold Zeitz said. “This acquisition enhances our growth strategy with the scale and experience of one of North America's leading fiber operators. I'm also grateful for the support of our original partners at both Searchlight Capital and WaveDivision Capital.”
This transaction values Ziply Fiber on an enterprise value basis, net of the present value of acquired tax attributes, at approximately 14.3 times 2025 estimated adjusted EBITDA, including run-rate synergies, the companies said.
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.
BCE said the purchase price is anticipated to be funded from the net proceeds of the divestiture of Maple Leaf Sports & Entertainment (MLSE). BCE sold its stake in the owner of the NHL’s Toronto Maple Leafs and NBA’s Toronto Raptors, among other assets, to rival Rogers Communications.
