BCE making major inroads into U.S. fibre networks with $5B acquisition
Global News
Bell Canada will use $4.2 billion of the proceeds it got from selling its stake in Maple Leaf Sports & Entertainment to Rogers Communications to fund this acquisition.
Canadian telecom firm BCE said on Monday it would buy internet services provider Ziply Fiber for $5 billion in cash, as it looks to expand its fibre footprint in the United States.
BCE’s subsidiary, Bell Canada, will use $4.2 billion of the proceeds it got from selling its stake in Maple Leaf Sports & Entertainment to Rogers Communications to fund this acquisition.
The buyout underscores Bell’s attempts to boost its fibre and internet business amid stiff competition in Canada.
After the deal closes, Bell said it would be poised to expand its fibre footprint to more than 12 million locations across North America by 2028.
Bell will also assume all of U.S.-based Ziply’s debt of around $2 billion.
Major North American carriers with international operations are cashing in on a booming demand for overseas travel and a resurgence in business bookings.