BCE completes acquisition of Ziply Fiber, accelerating its fibre growth strategy

Rhea-AI Summary

BCE (NYSE:BCE) has completed its acquisition of Ziply Fiber for C$5.0 billion (U.S. $3.65 billion) in cash, plus assuming C$2.6 billion in net debt. The strategic acquisition expands BCE's fiber footprint into the U.S. Pacific Northwest, adding 1.4 million locations to its network.

Through a strategic partnership with PSP Investments to create Network FiberCo, BCE aims to potentially reach up to 8 million fiber locations in the U.S., solidifying its position as North America's third-largest fiber Internet provider. The acquisition was funded through proceeds from BCE's sale of its MLSE minority stake completed on July 1, 2025.

Ziply Fiber will maintain its headquarters in Kirkland, Washington, operating as a separate business unit with its existing management team. BCE will update its 2025 financial guidance to reflect this acquisition when reporting Q2 2025 results on August 7.

Positive

• Strategic expansion adding 1.4 million U.S. locations to BCE's fiber network
• Partnership with PSP Investments enables potential growth to 8 million U.S. locations
• Acquisition funded through sale of non-core MLSE stake, converting passive investment into growth driver
• Retention of Ziply's experienced management team and headquarters ensures operational continuity
• Positions BCE as third-largest fiber Internet provider in North America

Negative

• Significant cash outlay of C$5.0 billion plus C$2.6 billion in assumed debt
• Integration risks associated with first major U.S. market expansion
• Financial guidance impact yet to be disclosed

Insights

Telecommunications Infrastructure Analyst

BCE's $5B acquisition of Ziply Fiber establishes significant US presence, creating North America's third-largest fiber provider with substantial growth potential.

BCE's C$5.0 billion acquisition of Ziply Fiber represents a transformative expansion into the U.S. telecommunications market. The transaction immediately adds 1.4 million fiber locations in the Pacific Northwest, establishing BCE as the third-largest fiber Internet provider in North America. The strategic partnership with PSP Investments to create Network FiberCo enables potential expansion to up to 8 million U.S. fiber locations, providing BCE with significant scale advantages and geographic diversification beyond its traditional Canadian market.

The deal structure demonstrates financial discipline - BCE funded the acquisition through proceeds from divesting its passive minority stake in MLSE, effectively converting a non-core asset into a strategic growth driver. The C$2.6 billion of assumed debt brings the total transaction value to C$7.6 billion. While this increases BCE's leverage, the high-margin, subscription-based fiber business should generate stable cash flows to service this debt.

From an operational standpoint, maintaining Ziply's existing management team and headquarters preserves continuity while allowing BCE to apply its fiber expertise to an established U.S. platform. This approach minimizes integration risks while setting the foundation for accelerated fiber deployment. The acquisition positions BCE to capitalize on growing demand for high-speed internet infrastructure, providing a runway for sustainable long-term growth beyond Canada's relatively saturated market.

This news release contains forward-looking statements. For a description of the related risk factors and assumptions, please see the section entitled "Caution Concerning Forward-Looking Statements" later in this news release.

• Acquisition expands Bell's fibre footprint into the United States by 1.4 million locations, cementing its position as the third-largest fibre Internet provider in North America
• Strategic partnership with Public Sector Pension Investment Board (PSP Investments) to develop fibre infrastructure through Ziply Fiber; enabling Bell to potentially reach up to 8 million locations in the U.S.

MONTRÉAL, Aug 1, 2025 /PRNewswire/ - BCE Inc. (TSX: BCE) (NYSE: BCE) today announced that it has successfully completed its acquisition of Ziply Fiber, the leading fibre Internet provider in the Pacific Northwest of the United States for C$5.0 billion (U.S. $3.65 billion) in cash, and the assumption of outstanding net debt of approximately C$2.6 billion at closing.

To accelerate expansion into the U.S. market, BCE and PSP Investments announced earlier this year a strategic partnership to create Network FiberCo. Combined with the completion of the Ziply Fiber acquisition, this long-term strategic partnership will enable Bell to potentially reach up to 8 million fibre locations in the U.S., reinforcing its position as the third-largest fibre Internet provider in North America.

The acquisition financing was supported by the proceeds of the sale of BCE's minority stake in MLSE completed on July 1, 2025. This transaction marked the conversion of BCE's passive interest in MLSE into a core business growth driver.

Ziply Fiber will operate as a separate business unit and will continue to be headquartered in Kirkland, Washington, with its existing management team and highly skilled workforce in alignment with Bell's strategic priority of building the best fibre Internet networks. Together, 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 continues to grow.

BCE will update its 2025 financial guidance targets to reflect the Ziply Fiber acquisition when it reports Q2 2025 results on August 7.

Quotes

"The acquisition of Ziply Fiber marks a key milestone in our fibre growth strategy by establishing a significant foothold in the attractive U.S. market. By combining Bell's deep fibre expertise with Ziply Fiber's experienced management team and ambitious expansion plans, we are creating a powerful platform for long-term growth, scale and geographic diversification that positions us to unlock significant value for our shareholders."

     -       Mirko Bibic, President & CEO, BCE Inc. and Bell Canada

"Bell's culture, vision and long-term strategy supports and amplifies our purpose to deliver the best and fastest fiber network with a refreshingly great customer experience. We're excited to accelerate and expand our fiber build to reach more communities and provide the connectivity and service they deserve."            

     -       Harold Zeitz, CEO, Ziply Fiber

About BCE

BCE is Canada's largest communications company,¹ providing advanced Bell broadband Internet, wireless, TV, media and business communications services. To learn more, please visit Bell.ca or BCE.ca.

Through Bell for Better, we are investing to create a better today and a better tomorrow by supporting the social and economic prosperity of our communities. This includes the Bell Let's Talk initiative, which promotes Canadian mental health with national awareness and anti-stigma campaigns like Bell Let's Talk Day and significant Bell funding of community care and access, research and workplace initiatives throughout the country. To learn more, please visit Bell.ca/LetsTalk.

_______________________

1 Based on total revenue and total combined customer connections.

About Ziply Fiber

 Ziply Fiber, home to America's Fastest Home Internet – 50 Gig, is an independent business unit of Bell Canada, a wholly-owned subsidiary of BCE Inc. (TSX, NYSE: BCE), Canada's largest communications company. Founded in 2020 and headquartered in Kirkland, Washington, Ziply Fiber's Northwest roots include a senior leadership team that has lived and worked in the communities we serve. That local market mindset and history are important parts of the company culture and vision for the future. More information on the company's products and services can be found at ziplyfiber.com.

Media inquiries:
Ellen Murphy
media@bell.ca

Ryan Luckin
ryan.luckin@ziply.com 

Investor inquiries:
Krishna Somers
krishna.somers@bell.ca

CAUTION REGARDING FORWARD-LOOKING STATEMENTS 

Certain statements made in this news release are forward-looking statements, including statements relating to: the acquisition of Northwest Fiber Holdco, LLC (doing business as Ziply Fiber (Ziply Fiber)); certain potential benefits expected to result from this acquisition including the U.S. fibre market growth platform expected to be provided by Ziply Fiber and long-term value creation expected to result for BCE's shareholders; the formation of Network FiberCo, a long-term strategic partnership to accelerate the development of fibre infrastructure through Ziply Fiber in the United States (U.S.); certain potential benefits expected to result from the formation of this strategic partnership including the future deployment of targeted fibre locations in the U.S.; BCE's growth prospects, business outlook, objectives, plans and strategic priorities; and other statements that are not historical facts. All such forward-looking statements are made pursuant to the "safe harbour" provisions of applicable Canadian securities laws and of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to inherent risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results or events could differ materially from our expectations. These statements are not guarantees of future performance or events, and we caution you against relying on any of these forward-looking statements. The forward-looking statements contained in this news release describe our expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable securities laws, we do not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Forward-looking statements are provided herein for the purpose of giving information about the benefits expected to result from the acquisition of Ziply Fiber, as well as from the formation of Network FiberCo, including the future deployment of targeted fibre locations in the U.S. Readers are cautioned that such information may not be appropriate for other purposes. There can be no assurance that the potential benefits expected to result from the acquisition of Ziply Fiber, as well as from the formation of Network FiberCo, including the future deployment of targeted fibre locations in the U.S., will be realized. For additional information on assumptions and risks underlying certain of our forward-looking statements made in this news release, please consult BCE's 2024 Annual MD&A dated March 6, 2025, BCE's 2025 First Quarter MD&A dated May 7, 2025 and BCE's news release dated May 8, 2025 announcing its financial results for the first quarter of 2025, filed with the Canadian provincial securities regulatory authorities (available at sedarplus.ca) and with the U.S. Securities and Exchange Commission (available at SEC.gov). These documents are also available at BCE.ca.

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SOURCE BCE Inc.

FAQ

How much did BCE pay for Ziply Fiber acquisition?

BCE paid C$5.0 billion (U.S. $3.65 billion) in cash and assumed C$2.6 billion in outstanding net debt for the Ziply Fiber acquisition.

How many locations will BCE's fiber network reach after the Ziply acquisition?

The acquisition adds 1.4 million locations immediately, with potential to reach up to 8 million fiber locations in the U.S. through the PSP Investments partnership.

Will Ziply Fiber maintain its current management and headquarters after BCE acquisition?

Yes, Ziply Fiber will operate as a separate business unit, maintaining its headquarters in Kirkland, Washington, with its existing management team and workforce.

When will BCE update its 2025 financial guidance to reflect the Ziply acquisition?

BCE will update its 2025 financial guidance when it reports Q2 2025 results on August 7, 2025.

How did BCE finance the Ziply Fiber acquisition?

The acquisition was financed through proceeds from the sale of BCE's minority stake in MLSE, which was completed on July 1, 2025.