Bell Canada
Deal News | Nov 06, 2024 | EIN
Bell Canada Enterprises, the largest telecom company in Canada, is marking its entry into the US fibre market with a strategic acquisition of Ziply Fiber for CAD 7 billion. This acquisition involves CAD 5 billion in cash and the assumption of CAD 2 billion in Ziply's debt, substantially expanding Bell's North American presence. Ziply Fiber, a key player in the Pacific Northwest, currently covers 1.3 million locations in four states and aims to extend its reach to over three million in the coming years. Through this acquisition, Bell will enhance its fibre reach to over 12 million locations across North America by 2028, positioning it among the top three fibre internet providers in the region. The deal, which is expected to close by the end of 2025, is subject to regulatory approvals and will be funded through the sale of BCE’s Maple Leaf Sports & Entertainment stake along with a Dividend Reinvestment Plan. This strategic move aligns with Bell’s growth strategy amid cost-saving measures, including significant workforce reductions aimed at counteracting declines in its legacy phone and news sectors.
Sectors
- Telecommunications
- Finance
Geography
- Canada – Bell Canada Enterprises, based in Canada, is the acquiring company in the transaction.
- United States – Ziply Fiber operates in the Pacific Northwest of the United States, marking Bell Canada's entry into the American market.
Industry
- Telecommunications – The acquisition of Ziply Fiber by Bell Canada highlights the telecommunications industry, focusing on expanding fibre internet services.
- Finance – The article involves significant financial elements including deal financing and cost-cutting measures to support the acquisition.
Financials
- CAD 7 billion – Total transaction value for the acquisition of Ziply Fiber by Bell Canada.
- CAD 5 billion – Cash component of the acquisition deal.
- CAD 2 billion – Debt component assumed by Bell Canada.
- CAN$150 million to $200 million – Estimated cost savings from job cuts by BCE.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Bell Canada Enterprises (BCE) | Acquirer | Company | Canada's largest telecom company is acquiring Ziply Fiber to expand its fibre network into the US. |
| Ziply Fiber | Target | Company | An internet service provider in the Pacific Northwest, targeted for acquisition by Bell Canada. |
| Harold Zeitz | CEO | Person | CEO of Ziply Fiber, commenting on the strategic benefits of the acquisition. |
| Maple Leaf Sports & Entertainment | Asset | Company | Stake being sold by BCE to help finance the acquisition. |