On Friday, the rumors that Everstream was for sale came to fruition. The consortium led by M/C Partners has entered into an agreement to sell the company to AMP Capital.
Everstream has been consolidating network assets up in Michigan and Wisconsin over the past few years, acquiring GLC and Lynx Network Group. Their network now spans some 10,000 route miles of fiber across 5 states.
The question was whether a strategic buyer with its own fiber network would step up to buy the company or a private equity player would take over for the next phase. The latter possibility obviously won out.
So now we get to see what AMP Capital has in mind. Will it be more consolidation, perhaps into adjacent territories in Illinois, Indiana, etc. Or will they focus on the organic opportunities within the existing rust belt footprint.
The deal is expected to close in Q2. Financial terms were not disclosed.
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Categories: Mergers and Acquisitions · Metro fiber
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Heck, there are still two or three carriers in Michigan on largely the same routes available. 🙂
Who would you postulate in Indiana and Illinois? Other than the much bigger guys (Uniti, Windstream, Zayo, etc.), all I can really think of are Indiana Fiber Network and BlueBird, both owned by independent, local phone companies. There are a few one-offs, but I don’t see the ones I can think of really selling either, being iFiber and ClearWave.
Well, those were most of my list as well. US Signal perhaps? Not pure fiber, but still.
This looks and smells like Fibertech 2.0. On a smaller more condensed scale and timeline. Brett and the boys now have a big enough bankroll to built where they want, and buy where it makes sense. Their financial model, and business processes are going to make it difficult for the 900 lb gorillas who can’t get out of their own way to keep up. Go ask Crown Castle how much traction Lightower had in Ohio.