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.
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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.