"The news today that Canadian telecom and broadband provider BCE has completed its acquisition of Ziply Fiber marks the first instance of a private equity firm cashing out on a telecom and broadband investment."
"Private equity investors have increasingly targeted broadband and telecom sectors, seeking to invest in fiber broadband opportunities with a strategy of quickly selling at profits after enhancing network value."
"The sale of Ziply to BCE's Bell Canada subsidiary is valued at $3.65 billion, indicating significant profits for WaveDivision and Searchlight after a brief six-year holding period."
"While initial public offerings are one exit route for private equity firms, selling to another provider, as evidenced by the Ziply/BCE deal, may be a more common strategy."
BCE has finalized the acquisition of Ziply Fiber, a move reflecting the trend of private equity firms exiting telecom investments. Investors actively invested in broadband opportunities, aiming to enhance network infrastructure and sell for profit within a few years. WaveDivision Capital and Searchlight Capital previously purchased Frontier operations, ultimately renaming them to Ziply. After only six years, the sale to BCE yields substantial profits. The deal suggests a preference for selling to providers rather than pursuing initial public offerings amidst regulatory challenges.
Read at Telecompetitor
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