Everstream, a Midwest-based regional fiber service provider, is taking part in the recent spate of fiber service acquisitions by reaching a deal to acquire Lynx Network Group.
After meeting customary regulatory approvals, the acquisition is set to close in January. The deal will be funded from cash on hand and additional debt arranged through Webster Bank.
Terms of the acquisition were not disclosed.
This is Everstream’s second acquisition this year, having previously acquired GLC/Comlink in July. Earlier, the service provider acquired Great Lakes Comnet, which had filed for Chapter 11 bankruptcy protection. Comnet gave Everstream 6,500 additional miles of fiber in Michigan and nearby states.
Like the GLC/Comlink acquisition, a key driver behind Everstream’s Lynx acquisition is to enhance its presence in the Michigan market.
By purchasing Lynx, Everstream will be able to serve a series of new enterprise businesses, carriers, partners and wireless carriers. The service provider will gain 1,500 miles of fiber in Michigan. Lynx has set up direct sales and agent channels to sell voice and data services and operates as a provider of wholesale intrastate data services to major wireless and fiber based carriers.
Upon completion, Everstream will serve over 1,000 on-net buildings, connect enterprise businesses to 27 data centers, and provide 24/7 customer support from operations centers in Michigan and Ohio.
“This transaction increases the density of our existing fiber routes and adds a host of new customers to our network while continuing to expand our footprint in the region,” Brett Lindsey, president and CEO of Everstream, in a release.
In all Everstream’s expanded five-state service area reaches from Cleveland north to Detroit, Lansing and Grand Rapids, Michigan, west to Milwaukee, Wisconsin, south to Chicago, South Bend, Indiana, and Columbus, Ohio, before coming back to Cleveland.
Everstream, which spun itself out of OneCommunity nearly a year ago, employs 104 people and owns 9,500 miles of fiber in five states.
Regional fiber consolidation
While Everstream’s acquisition of Lynx is not nearly as big as CenturyLink’s bid for Level 3, Everstream is showing the growing value in bulking up regional networks to serve as alternatives to larger players.
Besides the Level 3/CenturyLink and Windstream/EarthLink deals, a number of other service providers have been acquiring other regional assets in recent months.
Zayo announced its acquisition of Electric Lightwave last week for $1.42 billion, giving it an expanded presence in the West.