DETROIT — Rocket Fiber entered into an agreement to be acquired by Everstream.
"This acquisition marks the final stage of Rocket Fiber's evolution," said Marc Hudson, CEO and one of three co-founders at 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."
As part of the agreement, Everstream's expansion into Detroit will include:
- Acquisition of Rocket Fiber's fiber network.
- Direct connection to Everstream's existing fiber network infrastructure in Michigan and its other Midwest markets.
- Rocket Fiber's two offices in downtown Detroit, including more than 75 team members.
"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," said Brett Lindsey, Everstream's president and CEO. "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."
Everstream's enterprise-grade network delivers robust business fiber services, including 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.
The sale of Rocket Fiber follows the recent billion-dollar valuation of StockX — another Detroit-born startup.
"The Rock Family of Companies prides itself in supporting what is a very accessible and productive startup ecosystem the city of Detroit," said 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, Marc, Randy, and their entire team have put into Rocket Fiber."
Bank Street Group served as exclusive financial advisor, and Bodman PLC served as legal counsel to Rocket Fiber in connection with this transaction. MVP Capital Advisors served as exclusive financial advisor, and Thompson Hine LLP served as legal counsel to Everstream.
"Everstream looks forward to maintaining Rocket Fiber's strong presence in the Detroit market," Lindsey said. "We're excited to build on that success and partner with all new and existing customers to help them scale."
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