Ziply Fiber, based in Kirkland, Wash., 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 reach into the Pacific Northwest, where Ziply currently serves over 1.3 million business and residential locations in Washington, Oregon, Idaho, and Montana. BCE stock saw a decrease of over 10% following the announcement, and the company has plans to expand Ziply’s reach to more than three million locations within the next four years.
Formed in 2020, Ziply was created after a $1.35 billion deal to acquire the Northwest operations of internet and TV provider Frontier Communications. The acquisition was led by WaveDivision Capital, an investment company founded by the founder of Wave Broadband and several former executives, in partnership with Searchlight Capital Partners. Since its formation, Ziply has completed the buildout of around 2,000 new fiber miles and currently touts itself as the fastest residential internet service provider in the U.S.
Harold Zeitz, the former president of Wave Broadband and managing director at WaveDivision Capital, is the leader of Ziply Fiber. Additionally, telecommunications entrepreneur Steve Weed, who was CEO of Wave Broadband at the time of 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 changes to its Seattle-area workforce or operations, according to a spokesperson.
The acquisition of Ziply Fiber by Bell Canada is significant as it marks a major move for Bell into the Pacific Northwest region. With Ziply’s strong presence in Washington, Oregon, Idaho, and Montana, this acquisition will allow Bell to extend its services to a wider customer base in these areas. Additionally, the expansion plans to reach over three million locations in the next four years will further solidify Bell’s presence in the region and increase its market share.
For Ziply, the acquisition by Bell Canada provides opportunities for growth and expansion, leveraging Bell’s resources and expertise to reach more customers and enhance its services. With the financial backing and support of BCE, Ziply will be able to accelerate its plans for expansion and further establish itself as a leading fiber internet service provider in the U.S. The leadership of Harold Zeitz and Steve Weed will play a key role in guiding Ziply through this transition and ensuring a smooth integration with Bell Canada.
Overall, the acquisition of Ziply Fiber by Bell Canada represents a strategic move for both companies to strengthen their positions in the telecommunications industry. With Ziply’s existing infrastructure and customer base in the Pacific Northwest, combined with Bell’s resources and experience, this partnership has the potential to drive innovation, improve services, and enhance connectivity for customers in the region. It will be interesting to see how the companies work together to achieve their growth objectives and deliver value to their customers in the coming years.
