Bell Canada Enterprises, Canada’s leading telecom company, takes a bold step into the US market by acquiring Ziply Fiber for CAD 7 billion. This acquisition signifies Bell’s first venture into the US fibre market. The transaction includes CAD 5 billion in cash along with CAD 2 billion in assumed debt of Ziply Fiber, which will bolster Bell’s geographic influence.
Harold Zeitz, CEO of Ziply Fiber, expressed enthusiasm about the acquisition. “Bell’s leadership and vision aligns perfectly with our commitment to improve the connected experiences of our communities through fast, reliable fibre Internet and a refreshingly great experience. This acquisition enhances our growth strategy with the scale and experience of one of North America’s leading fibre operators.”
Ziply Fiber’s network currently covers 1.3 million locations across four states, with plans to expand to over three million in the next four years. The acquisition is projected to elevate Bell’s customer reach to over 12 million fibre connections across North America by 2028. This expansion positions Bell as one of the top three fibre internet providers in the region.
Moreover, this deal will provide customers on both sides of the US-Canada border with more options. It stands as a testament to Bell’s strategy to fortify and grow its presence in the North American telecom sector.
Subject to regulatory approval, the transaction is expected to finalize by late 2025. It will be financed through proceeds from BCE’s sale of its Maple Leaf Sports & Entertainment stake and a discounted Dividend Reinvestment Plan.
Earlier, BCE had announced significant workforce reductions, cutting 4,800 jobs, around 9% of its workforce, due to declining revenues in its traditional phone and news businesses. These job cuts were projected to generate cost savings of approximately CAD 150 million to CAD 200 million annually. This financial efficiency will potentially strengthen the company’s growth trajectory in other burgeoning segments like fibre internet.
