Everstream has agreed to acquire Rocket Fiber LLC, a fiber-based network service provider in Detroit. The acquisition completes Everstream’s coverage in all major Michigan markets and gives Everstream the largest fiber footprint in greater downtown Detroit, according to a news release. Terms of the deal were not disclosed.
“Detroit has undergone extraordinary growth in the last five years, making the acquisition of Rocket Fiber and its strong presence in Detroit the perfect complement to our existing Michigan network,” Everstream President and CEO Brett Lindsey said in a statement. “We’ve had a longstanding relationship with Dan Gilbert and the Rock Family of Companies, including Rocket Fiber, Rock Ventures and the Cleveland Cavaliers. This opportunity allows us to continue to provide Detroit-area businesses with the high-capacity, low-latency connectivity services they’ve come to expect from their fiber network provider and expands their direct access across Midwest through the growing Everstream network.”
The expansion into Detroit with the Rocket Fiber acquisition includes:
- 41 route miles of network in greater downtown Detroit.
- Direct connection to Everstream’s existing fiber network infrastructure in Michigan and its other Midwest markets.
- Two offices in downtown Detroit, including more than 75 team members.
Rocket Fiber CEO and Co-Founder Marc Hudson added: “This acquisition marks the final stage of Rocket Fiber’s evolution. What began six years ago as a moonshot idea to leapfrog Detroit’s technology infrastructure has come full circle as we’ve matured into a rapidly growing and profitable business. By joining Everstream, our customers have access to the same incredible client service along with the added benefit of Everstream’s much larger Midwest footprint.”
The acquisition of Rocket Fiber is in addition to the company’s recently announced $250 million commitment to buildout new fiber infrastructure across the Midwest in 2020. This year, Everstream plans to expand into five new markets, hire 100 new employees and reach its goal of 15,000 route miles of fiber deployed across the Midwest.
“Everstream looks forward to maintaining Rocket Fiber’s strong presence in the Detroit market,” Lindsey said. “We’re excited to build on that success and partner with all new and existing customers to help them scale.”
Rocket Fiber was founded in 2014 by Hudson, CTO Randy Foster and COO Edi Demaj after the trio recognized the need for a faster, more reliable internet solution in Detroit. Dan Gilbert, who shared their goal of providing the community with dependable connectivity, provided funding for the venture.
Bank Street Group served as exclusive financial adviser and Bodman PLC served as legal counsel to Rocket Fiber in connection with this transaction. MVP Capital Advisors served as exclusive financial adviser and Thompson Hine LLP served as legal counsel to Everstream.
