Bell announced last week it has completed its acquisition of Ziply Fiber, a fibre internet provider in the U.S.’s Pacific Northwest region, for $5 billion in cash and the assumption of approximately $2.6 billion of debt.
The acquisition expands Bell’s fibre footprint into the U.S. by 1.4 million locations, according to a Bell press release, which said it also strengthens the Canadian telecom’s position as the third-largest fibre internet provider in North America.
To accelerate its expansion into the U.S. market, Bell and the Public Sector Pension Investment Board in May announced a strategic partnership to create Network FiberCo, which combined with the Ziply Fiber acquisition will enable Bell to potentially reach up to eight million fibre locations in the U.S., according to the press release.
“The acquisition of Ziply Fiber marks a key milestone in our fibre growth strategy by establishing a significant foothold in the attractive U.S. market,” said Mirko Bibic, president and CEO of BCE and Bell Canada, in a statement. “By combining Bell’s deep fibre expertise with Ziply Fiber’s experienced management team and ambitious expansion plans, we are creating a powerful platform for long-term growth, scale and geographic diversification that positions us to unlock significant value for our shareholders.”
Ziply Fiber will operate as a separate business unit and will continue to be headquartered in Kirkland, Washington, with its existing management team and workforce, the release said.
“Bell’s culture, vision and long-term strategy supports and amplifies our purpose to deliver the best and fastest fiber network with a refreshingly great customer experience,” said Ziply Fiber CEO Harold Zeitz. “We’re excited to accelerate and expand our fiber build to reach more communities and provide the connectivity and service they deserve.”
Bell said the Ziply Fiber acquisition financing was supported by the proceeds of the sale of Bell’s minority stake in Maple Leaf Sports and Entertainment to Rogers, which was completed on July 1.
Bell added that it will update its 2025 financial guidance targets to reflect the Ziply Fiber acquisition when it reports its second quarter 2025 results on Aug. 7.
