Six years after being founded as a Detroit-based internet provider startup, Rocket Fiber today announced that it has agreed to be acquired by Cleveland’s Everstream, an enterprise-grade network provider operating thousands of route fiber miles across the Midwest. Terms of the deal were not disclosed.
Everstream’s expansion into Detroit, as a result of the acquisition, will include Rocket Fiber’s fiber network, direct connection to Everstream’s existing fiber network infrastructure in Michigan and the region, Rocket Fiber’s two offices in downtown Detroit, and more than 75 employees.
“This acquisition marks the final stage of Rocket Fiber’s evolution,” says Marc Hudson, CEO and one of three co-founders of Rocket Fiber. “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, we are now able to turbocharge that mission by offering our clients the same incredible client service but with the added benefit of leveraging Everstream’s much larger Midwest footprint.”
Everstream’s network promises to deliver business fiber services, dedicated internet access, dark fiber, Ethernet, and data center solutions. The company’s advanced fiber network offers direct peering with all major carriers and cloud hyperscalers. With high-speed, low-latency connections, it provides converged internet, voice and data services at speeds of up to 100 Gbps.
“Detroit has undergone an urban revitalization, making the acquisition of Rocket Fiber and its strong presence in Detroit the perfect complement to our existing Michigan network,” says Brett Lindsey, president and CEO of Everstream. “We’ve had a longstanding relationship with Dan Gilbert and his portfolio of businesses, 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.”
All Rocket Fiber clients will continue to receive all services without disruption.
“Everstream looks forward to maintaining Rocket Fiber’s strong presence in the Detroit market,” Lindsey says.
“The Rock Family of Companies prides itself in supporting what is a very accessible and productive startup ecosystem the city of Detroit,” says Aaron Walker, chief communications officer at Rock Ventures. “It is amazing to see that Dan’s initial vision and faith in three entrepreneurs has paid off in the form of Rocket Fiber creating game-changing digital infrastructure access that has helped power Detroit’s tech and business scene. It is a testament to what can be accomplished in Detroit and the hard work that Edi (Demaj), Marc (Hudson), Randy (Foster), and their entire team have put into Rocket Fiber.”
Bank Street Group served as exclusive financial advisor and Bodman in Detroit served as legal counsel to Rocket Fiber in connection with this transaction. MVP Capital Advisors served as exclusive financial advisor and Thompson Hine served as legal counsel to Everstream.