Everstream announced on Wednesday that it has inked a definitive agreement to buy Rocket Fiber's Detroit fiber assets.
The deal is comprised of Rocket Fiber's infrastructure, including its service platform and fiber network. The financial terms of the deal weren't disclosed. With Rocket Fiber in hand, Everstream will have fiber network coverage in all major Michigan markets, as well as the largest fiber network in downtown Detroit, according to Everstream.
Once the deal passes regulatory muster, Cleveland-based Everstream will have 41 route miles of fiber network in downtown Detroit. Rocket Fiber's network will connect to Everstream's existing fiber network infrastructure in Michigan as well as with its other Midwest markets, including Columbus, Ohio; Indianapolis, Indiana; and Milwaukee, Wisconsin.
Rocket Fiber has two offices in downtown Detroit with more than 75 employees. Rocket Fiber was founded in 2014 by CEO Marc Hudson, Chief Technology Officer Randy Foster and Chief Operating Officer Edi Demaj in response to the need for a faster, more reliable network in Detroit. Dan Gilbert provided funding for the Rocket Fiber.
“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,” said Everstream President and CEO Brett Lindsey, 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 [the] Midwest through the growing Everstream network.”
RELATED: Everstream plans $250M fiber investment for Midwest buildout
The deal to buy Rocket Fiber comes on top of Everstream's recently announced $250 million commitment to build-out new fiber infrastructure across the Midwest this year. As part of that commitment, Everstream plans to expand into five new markets in 2020 including Chicago; St. Louis, Missouri; Dayton, Ohio; Fort Wayne, Indiana; and Louisville, Kentucky. Everstream also plans to have 3,000 on-net locations in 12 markets throughout the Midwest by the end of 2020.
Everstream’s enterprise-grade network delivers a range of fiber-based services, including dedicated internet access, dark fiber, Ethernet and data center solutions, to businesses with low latency speeds of up to 100 Gbps.
The deal to buy Rocket Fiber is expected to close in the second quarter.