Everstream Solutions LLC, a Cleveland based network service provider that brings fiber-based Ethernet, Internet and data center solutions to business customers throughout Northeast Ohio, will receive a $50m investment.
The transaction is scheduled to close October 15, 2015.
Backers included Boston-based M/C Partners and investors advised by the Private Equity Group of J.P. Morgan Asset Management.
The company will use the funds for expansion and customer acquisition, as well as retiring existing debt.
Presently, Everstream is part of OneCommunity, a Cleveland based nonprofit corporation focused on bringing fiber-based services to healthcare, government and education customers. Under the terms of the agreement, Everstream will acquire a majority of the fiber assets owned by OneCommunity and will be structured as a standalone organization.
In return, OneCommunity will retain a minority interest in Everstream and will receive funds to support OneCommunity’s mission-related work, which will continue after the transaction. The investment allows OneCommunity to focus on extending its mission to grow a digital economy and improve the quality of life in Northeast Ohio.
Brett Lindsey, currently chief operating officer of OneCommunity and president of Everstream, will serve as the chief executive officer of Everstream going forward, while Lev Gonick will remain the chief executive officer of OneCommunity.
With over 2,500 miles of fiber across 24 counties and comprehensive data center connectivity at 10 Gigabit speed, Everstream delivers best-in-class network solutions while providing an unrivaled commitment to customer service.