Once the transaction closes, Bell is set to expand its fibre footprint to more than 12 million locations across North America by the end of 2028.
Bell Canada has agreed to acquire US fibre company Ziply Fiber, in a deal expected to be worth as much as C$7 billion (US$5bn). The acquisition is part of Bell’s plans to expand its fibre footprint across North America and over the border into the US.
Bell noted that the value of the deal is worth approximately C$5 billion ($3.6bn) in cash, plus the assumption of debt, resulting in an overall transaction value of close to C$7 billion (US$5bn).
“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,” said Mirko Bibic, President & CEO, BCE and Bell Canada.
“Fibre 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 fibre 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.”
Ziply Fiber is a local Internet service provider (ISP) that offers fibre Internet in Washington, Oregon, Idaho, and Montana to more than 1.3 million fibre locations.
The company has plans to reach more than three million locations in the next four years.
Once the transaction closes, Bell is set to expand its fibre footprint to more than 12 million locations across North America by the end of 2028, meaning it will be the third-largest fibre Internet provider in the region.
AT&T, with more than 28 million locations, and Verizon, with around 17.8 million, are the two biggest fibre providers at present.
A subsidiary of private investment company WaveDivision Capital, the company was formed by former Wave Broadband executive Steven Weed in May of 2020 when it acquired the Northwest operations of Frontier Communications.
The company’s fibre network connects to data centres from major providers in its service region, including Sabey, Digital Realty, Flexential, H5, NTT, Vantage, Cologix, TierPoint, Evoque, and others.
Last month, the company launched data centre colocation services at more than 200 facilities across Washington, Oregon, Idaho, and Montana.
The deal is expected to close during the second half of next year, subject to certain customary closing conditions and the receipt of certain regulatory approvals.
Following the closing of the deal, Ziply Fiber will operate as a separate business unit and will continue to be headquartered in Kirkland, Washington.
