BCE to Acquire Ziply Fiber, Accelerating its Fiber Growth Strategy across North America

BCE Inc. (TSX: BCE) (NYSE: BCE), Canada’s largest communications company, announced today that its wholly-owned subsidiary, Bell Canada (Bell), has entered into a definitive agreement to acquire Ziply Fiber, the leading fiber Internet provider in the Pacific Northwest of the United States, (the “Acquisition”) for approximately C$5.0 billion in cash and the assumption of outstanding net debt of approximately C$2.0 billion to be rolled over at transaction close, representing a transaction value of approximately C$7.0 billion.

This transaction enhances Bell’s growth profile and strategic position by giving it a foothold in the large, underpenetrated U.S. fiber market, while increasing its scale, diversifying its operating footprint and unlocking significant growth opportunities.

“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. 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.”

– Mirko Bibic, President & CEO, BCE and Bell Canada

Ziply Fiber’s focus on network technology and innovation has resulted in steady expansion of its footprint since 2020, with over 1.3 million fiber locations across four U.S. states and plans to reach more than three million locations in the next four years. Upon closing of this acquisition, Bell will be poised to expand its fiber footprint to over 12 million locations across North America by the end of 2028, reinforcing its position as the third-largest fiber Internet provider in North America.

The combination of Bell and Ziply Fiber will offer enhanced value for existing and new customers in both Canada and the United States as demand for faster, more reliable Internet and data services increases. Together, the two companies will bring a depth of management, product leadership and technological expertise, aligned on culture, vision and long-term strategy.

“Bell’s leadership and vision aligns perfectly with our commitment to improve the connected experiences of our communities through fast, reliable fiber Internet and a refreshingly great experience. This acquisition enhances our growth strategy with the scale and experience of one of North America’s leading fiber operators. I’m also grateful for the support of our original partners at both Searchlight Capital and WaveDivision Capital.”

– Harold Zeitz, CEO, Ziply Fiber

This transaction values Ziply Fiber on an enterprise value basis, net of the present value of acquired tax attributes, at approximately 14.3 x 2025 estimated adjusted EBITDA, including run-rate synergies. The Acquisition is expected to close in the second half of 2025, subject to certain customary closing conditions and the receipt of certain regulatory approvals. Once the transaction has closed, Ziply Fiber will operate as a separate business unit and will continue to be headquartered in Kirkland, Washington.