Bell’s parent company signs deal to buy U.S. fibre internet provider for $5 billion

BCE Inc. says it has signed a deal to buy U.S. fibre internet provider Ziply Fiber for about $5 billion in cash.

In addition to the purchase price, BCE will assume about $2 billion in net debt as part of the transaction.

The company said Monday the deal will extend Bell’s fibre footprint to the United States, adding approximately 1.3 million fibre locations.

“This acquisition marks a bold milestone in Bell’s history as we lean into our fibre expertise and expand our reach beyond our Canadian borders,” BCE chief executive Mirko Bibic said in a statement.

“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.”

Based in Kirkland, Wash., Ziply Fiber offers fibre internet service in the U.S. Pacific Northwest, including Washington, Oregon, Idaho and Montana.

“This acquisition enhances our growth strategy with the scale and experience of one of North America’s leading fibre operators,” Ziply Fiber chief executive Harold Zeitz said.

Once the deal has closed, Ziply Fiber is expected to operate as a separate business unit and will continue to be headquartered in Kirkland.

BCE says it will use about $4.2 billion in net proceeds from the sale of its stake in Maple Leaf Sports & Entertainment to help pay for the deal.

The company also says it plans to pause the growth of its dividend until its  dividend payout and net debt leverage ratios are tracking towards its target policy ranges.

The acquisition is expected to close in the second half of 2025, subject to customary closing conditions and regulatory approvals.