BCE Inc., a major Canadian telecommunications company, declared on Monday that its subsidiary, Bell Canada, has finalized an agreement to acquire Ziply Fiber for approximately C$7.0 billion. The transaction includes approximately C$5.0 billion in cash and assumes C$2.0 billion in existing net debt, set to be rolled over at the time of closing.
The transaction is anticipated to conclude in the latter half of 2025, contingent upon standard closing conditions and requisite regulatory approvals. Post-acquisition, Ziply Fiber, an internet service provider in the Pacific Northwest of the United States, will continue to operate as an independent business unit based in Kirkland, Washington.
To cover the cash portion of the purchase, approximately C$4.2 billion will be sourced from the net proceeds garnered from the sale of MLSE. The remaining amount will be financed through a discounted Treasury Dividend Reinvestment Plan (DRP). If the divestiture of BCE's stake in MLSE closes after this acquisition, Bell has secured a $3.7 billion fully committed delayed-draw term loan facility to ensure the financing.
BCE noted that this acquisition strengthens Bell's growth trajectory and strategic posture by granting access to the expansive, underserved U.S. fiber market. The merger will increase Bell's scale, broaden its operational reach, and unlock considerable growth opportunities.
The integration of Bell and Ziply Fiber aims to enhance value for both existing and potential customers across Canada and the U.S., in response to increasing demand for high-speed, reliable internet and data services.
Additionally, BCE affirmed its intention to uphold its annual common share dividend at $3.99 per share for the 2025 fiscal year. BCE also stated its plan to revise its Shareholder Dividend Reinvestment and Stock Purchase Plan, which, at the Board's discretion, will allow issuing new common shares from the treasury at a reduced rate compared to the average market price before the relevant dividend payment date.
