By Jeremy Nobile, Crain’s Cleveland Business
Everstream announced on Tuesday, Oct. 1, a definitive agreement to buy more than 200 miles of fiber network and its competitive local exchange carrier (CLEC) operation from Indianapolis-based DataBank, building the company’s growing coverage across the Midwest.
Terms of the deal — which accelerates the Cleveland-based company’s already-planned entry to the Indianapolis market — were not disclosed. The acquired assets were previously owned by telecommunications company LightBound, which was acquired by DataBank in December.
Everstream’s intention is to fully cover the Indianapolis metro area.
“By acquiring existing fiber network in Indianapolis, Everstream is able to expand its Midwest footprint and begin serving area businesses more quickly than expected,” said Everstream president and CEO Brett Lindsey in a statement. “Our enterprise-grade network provides businesses with enhanced reliability, optimal routes and maximum performance, and is complemented by Everstream’s dedication to corporate transparency and customer support.”
Everstream said it plans to extend that Indianapolis network an additional 600 miles, for a total of 800 route miles, investing $38 million in the project. The network will provide internet speeds capable of reaching 100 Gbps. The total network includes connections to 36 Midwest data centers.
The company will have a local office in Indianapolis with roughly 20 employees that will be led by regional vice president of sales Paul Peach and regional vice president of operations Greg Meinczinger.
Everstream said it is on track to grow to more than 15,000 miles of fiber with more than 3,000 on-net locations in 12 markets across the Midwest by the end of 2020. The company currently has 208 employees, according to a spokesperson, including 23 coming over from LightBound. It started the year with 101 employees — so it’s more than doubled headcount since then.
In August, Everstream completed an 80-mile fiber ring circling Columbus, where it also recently opened an office with 21 employees. The company said it would create 40 full-time-equivalent positions in Columbus at the time, as well as 50 in Cleveland as part of its commitment to the state, which awarded Ohio Job Creation Tax Credits to Everstream in December 2018.
Supporting the business in its expansion is AMP Capital, an Australian investment firm that acquired a 100% stake in Everstream in September 2018. AMP announced securing $210 million in senior secured credit facilities when it bought Everstream, about $100 million of which is being applied to supporting Everstream’s expansion efforts.
Everstream was founded in 2014 as the for-profit subsidiary of OneCommunity, a nonprofit that provided fiber internet to other nonprofits and government entities before evolving to become DigitalC. Everstream became an independent company when it was acquired by M/C Partners of Boston and additional investors in 2015.