In an aggressive move into the northwest region of the American market, Bell Canada Enterprises (BCE) will acquire Ziply Fiber for approximately C$7 billion. The amount is divided between cash (C$5 billion, US $3.65 billion) and the assumption of outstanding net debt of approximately C$2.0 billion.
Ziply Fiber’s footprint is in Washington, Oregon, Idaho, and Montana. The deal will cover about 1.3 million Ziply Fiber locations and would make BCE — which is a wholly-owned subsidiary of Bell Canada — the third-largest fiber-based internet provider in North America, with about 9 million locations.
Bell Canada says that its goal is to add 3 million locations by the end of 2028. It will partly finance the acquisition by selling its C$4.2 billion stake in Maple Leaf Sports & Entertainment (MLSE).
“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,” Bell Canada President and CEO said in the announcement.
“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.”
Ziply Fiber said in late October that the western half of its “Northern Link Route” is ready. The service is or soon will be available in cities in Washington, Oregon, and Montana, and will reach Minneapolis and Chicago by the end of the year. The route will offer commercial customers access to 400 Gig wavelength, 100 Gig wavelength, 10 and 100 Gig transit services, as well as dark fiber.
The company also launched a colocation service last month. Chris Gellos, the general manager of commercial services for Ziply, told Telecompetitor that the service will be available in more than 200 Ziply central offices in the service provider’s footprint.
Ziply was formed when WaveDivision Capital purchased Frontier operations in 2020.
