Bell Canada acquiring Seattle-area internet provider Ziply Fiber in $3.6B deal

Kirkland, Wash.-based fiber internet service provider Ziply Fiber agreed to be acquired by Bell Canada, a subsidiary of Canadian telecom giant BCE, in a deal valued around $3.6 billion.

The deal will help Bell expand its reach into the Pacific Northwest, where Ziply serves more than 1.3 million business and residential locations across Washington, Oregon, Idaho and Montana.

BCE stock was down more than 10% after the announcement on Monday. The company said it plans to expand Ziply’s reach to more than three million locations in the next four years.

Ziply was formed in 2020 after a $1.35 billion deal to acquire the Northwest operations of internet and TV provider Frontier Communications. WaveDivision Capital, an investment company operated by the founder of Wave Broadband and several former executives, teamed up with Searchlight Capital Partners to make the purchase.

The company has built out around 2,000 new fiber miles and claims to be the fastest residential internet service provider in the U.S.

Ziply is led by Harold Zeitz, the former president of Wave Broadband and managing director at WaveDivision Capital.

Telecommunications entrepreneur Steve Weed, who was CEO of Wave Broadband when it was acquired for $2.36 billion in 2018, is the chairman of Ziply.

Ziply does not expect any changes to its Seattle-area workforce or operations as a result of the acquisition, according to a spokesperson.