November 4, 2024
On November 4, 2024, BCE Inc. announced that its wholly-owned subsidiary, Bell Canada (“Bell”), has signed a definitive agreement to acquire 100 per cent of Ziply Fiber (Ziply) – a BCI private equity program investment. Ziply is the largest, regionally-focused fibre internet provider in the U.S. Pacific Northwest, with operations and assets in Washington, Oregon, Idaho, and Montana.
This marks Bell’s first expansion outside of Canada, and will accelerate their fibre growth strategy across North America. Ziply is currently owned by an investor consortium led by Searchlight Capital Partners, including BCI, and the sale to Bell was supported by a unanimous vote. The agreement values Ziply at approximately C$7.0 billion, with the accepted offer consisting of approximately C$5.0 billion in cash, and the assumption of C$2.0 billion of outstanding net debt rolled over at the transaction close.
“The sale and valuation of Ziply underscores the quality of the fibre network our investor consortium created when we originally acquired the fibre network assets and rebranded the business Ziply in 2020. Alongside other investors, BCI’s private equity program is exceptionally proud of the growth Ziply has already demonstrated and the reputation they have built in the past four years,” said Jim Pittman, EVP & Global Head, BCI Private Equity. “Today, demand for fibre optic services remains very high, and we’re excited for the opportunity ahead for a known Canadian brand like Bell to leverage these core assets as they pursue their new U.S. expansion strategy. Our team continues to see opportunities in the fibre optic space and will continue to evaluate new opportunities in the sector.”
