Canadian telecommunications giant BCE Inc. announced today that it will acquire US-based internet service provider Ziply Fiber for C$5 billion ($3.6 billion USD) in cash. This strategic move marks a significant expansion of BCE’s fiber optic network into the United States, bolstering its competitive position in the rapidly growing broadband market.
The acquisition will be largely funded by the proceeds of BCE’s recent sale of its stake in Maple Leaf Sports & Entertainment to Rogers Communications. Bell Canada, a subsidiary of BCE, will utilize C$4.2 billion from this transaction to finance the purchase of Ziply Fiber.
This move underscores BCE’s commitment to expanding its fiber infrastructure and internet services amidst fierce competition in the Canadian telecommunications landscape. By acquiring Ziply Fiber, BCE gains access to a robust fiber network and a strong customer base in the western United States.
“This acquisition will accelerate Bell’s growth strategy by significantly expanding our fibre footprint in an attractive and growing market, and will further strengthen Bell’s position as North America’s leading provider of broadband network and services,” said Mirko Bibic, President and CEO of BCE and Bell Canada.
The deal is expected to position Bell to expand its fiber footprint to over 12 million locations across North America by 2028. In addition to the purchase price, Bell will assume approximately C$2 billion of Ziply Fiber’s existing debt.
This acquisition represents a major step in BCE’s ongoing efforts to enhance its network capabilities and deliver high-speed internet services to a broader customer base. The transaction is subject to regulatory approvals and is expected to close in the first half of 2024.