Ziply Fiber, a Kirkland, Wash.-based fiber internet service provider, has agreed to be acquired by Bell Canada, a subsidiary of Canadian telecom giant BCE, in a deal valued at $3.6 billion. This acquisition will help Bell expand its presence in the Pacific Northwest, where Ziply currently serves more than 1.3 million business and residential locations across Washington, Oregon, Idaho, and Montana. As a result of this deal, Bell plans to grow Ziply’s reach to over three million locations within the next four years. BCE’s stock experienced a decline of more than 10% following the announcement on Monday.
Ziply Fiber was established in 2020 through a $1.35 billion acquisition of the Northwest operations of internet and TV provider Frontier Communications. The purchase was led by WaveDivision Capital, an investment company founded by the founder of Wave Broadband and several former executives, in collaboration with Searchlight Capital Partners. Since its formation, Ziply has expanded its network by approximately 2,000 new fiber miles and prides itself on being the fastest residential internet service provider in the U.S. The company is headed by Harold Zeitz, who previously served as the president of Wave Broadband and managing director at WaveDivision Capital. Additionally, telecommunications entrepreneur Steve Weed, the former CEO of Wave Broadband during its acquisition for $2.36 billion in 2018, serves as the chairman of Ziply.
Despite the acquisition by Bell Canada, Ziply does not anticipate any alterations to its Seattle-area workforce or operations. This acquisition represents a significant development within the telecommunications industry, with a major player like Bell Canada taking over a growing fiber internet service provider like Ziply Fiber. The strategic move will likely result in increased competition and enhanced service offerings for customers in the Pacific Northwest region. The leadership team at Ziply, including Harold Zeitz and Steve Weed, will continue to play key roles in driving the company’s growth and expansion under the ownership of Bell Canada. The completion of the acquisition is subject to regulatory approvals, and the two companies will work towards a smooth transition process for all stakeholders involved.
Overall, the acquisition of Ziply Fiber by Bell Canada marks a significant milestone for both companies and the telecommunications industry as a whole. It highlights the growing importance of fiber internet services and the need for companies to expand their networks to meet the increasing demand for high-speed connectivity. With Bell’s financial backing and Ziply’s strong presence in the Pacific Northwest, the combined entity is well-positioned to capitalize on the growing market opportunities in the region. Customers can expect to benefit from enhanced services, improved connectivity, and increased competition as a result of this acquisition. As Ziply continues to expand its reach under the ownership of Bell Canada, it will be interesting to see how the company evolves and innovates in the fast-paced world of telecommunications.
