Ziply Fiber Selling to Bell Canada Parent in $5 Billion Deal

WASHINGTON, Nov. 4, 2024 – One of the Pacific Northwest’s largest fiber internet providers has agreed to be acquired by Canada's largest communications company.

Ziply Fiber, based in Kirkland, Washington, has signed a deal to sell to BCE Inc. through its subsidiary Bell Canada, for approximately $3.65 billion in cash, plus $1.46 billion in assumed net debt. The totals are in U.S. dollars.

The acquisition, Bell's first major expansion into the U.S. market, adds 1.3 million fiber locations across four U.S. states to Bell's existing 9 million fiber locations in Canada, reinforcing its position as North America’s third-largest fiber internet provider, according to the company’s release.

“Bell Canada and Ziply Fiber both understand that the expansion of fiber networks in Canada and the United States is a once-in-a-generation opportunity to deliver the fiber broadband infrastructure that will serve communities for generations to come,” Dan Miller, senior vice president of Curator, and a Ziply Fiber representative, wrote in an email to Broadband Breakfast. 

“Our job is growth in the U.S. and Bell’s is in Canada, and we fully expect to contribute significantly to the combined goal of more than 12 million fiber locations by 2028,” Miller said. “Our partnership with Bell Canada will enable Ziply Fiber to expand further and faster across the Northwest.”

Ziply Fiber’s valuation at 14.3 times its projected 2025 EBITDA reflected its high-growth trajectory and commitment to network expansion. In the past four years, Ziply has brought fiber connectivity to over 150 communities across the Pacific Northwest. 

The acquisition will require FCC approval to transfer Rural Digital Opportunity Fund and Connect America Fund II support, along with Section 214 service authorizations. In a recent a recent decision, the FCC’s Wireline Competition Bureau granted a similar application for Ziply Fiber’s acquisition of RDOF and CAF II assets from LocalTel, an ISP based in East Wenatchee, Washington.

“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,” Harold Zeitz, CEO of Ziply Fiber, said in a release.

“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 Wave Division Capital," Zeitz said.

Ziply is controlled by Searchlight Capital Partners, the Public Sector Pension Board (Canada); Canada Pension Plan Investment Board, the British Columbia Investment Management Corporation (Canada), and long time communications sector investor Steve Weed.