BCE to acquire Ziply Fiber, accelerating its fibre growth strategy across North America

Core Viewpoint - BCE Inc. is acquiring Ziply Fiber for approximately C$5.0 billion (U.S. $3.65 billion), which will enhance its fiber footprint in the U.S. and solidify its position as the third-largest fiber Internet provider in North America [2][3][4]. Acquisition Details - The acquisition includes the assumption of Ziply Fiber's outstanding net debt of approximately C$2.0 billion, bringing the total transaction value to approximately C$7.0 billion [2]. - BCE plans to fund the acquisition primarily through C$4.2 billion in net proceeds from the sale of its stake in Maple Leaf Sports & Entertainment [2][7]. Strategic Implications - This transaction allows BCE to enter the underpenetrated U.S. fiber market, increasing its scale and diversifying its operational footprint [3]. - Upon completion, BCE aims to expand its fiber locations to over 12 million by the end of 2028, enhancing its growth profile and unlocking significant opportunities [4][5]. Financial Projections - The acquisition values Ziply Fiber at approximately 14.3 times the estimated adjusted EBITDA for 2025, including anticipated synergies [6]. - BCE's net debt leverage ratio is expected to remain stable post-acquisition, with a focus on maintaining investment-grade credit ratings [8]. Dividend Policy - BCE intends to maintain its annual common share dividend at $3.99 per share during the financial year ending December 31, 2025, while pausing dividend growth until financial metrics align with target ranges [9]. - A discounted treasury Dividend Reinvestment Plan (DRP) will be implemented to help fund strategic growth initiatives [10][12].