AMP Capital has agreed to acquire Everstream Solutions LLC, a super-regional network service provider bringing fiber-based ethernet, internet and data center solutions to businesses in the Midwest. The sellers include M/C Partners and investors advised by the private equity group of J.P. Morgan Asset Management and Morgan Stanley Alternative Investment Partners. No financial terms were disclosed. Evercore and MVP Capital served as lead financial advisers to Everstream and M/C Partners on the transaction while Goldman Sachs served as financial adviser to AMP Capital.
CLEVELAND–(BUSINESS WIRE)–Everstream Solutions LLC (“Everstream”), a super-regional network service provider bringing fiber-based Ethernet, internet and data center solutions to businesses throughout the Midwest, announced today that its current investors—M/C Partners, a Boston-based private equity firm, and its limited partners including investors advised by the Private Equity Group of J.P. Morgan Asset Management and Morgan Stanley Alternative Investment Partners—have entered into a definitive agreement to sell Everstream to AMP Capital. Terms were not disclosed.
“Our team is very thankful to M/C for the opportunity to partner with them and deliver an outstanding result to their investors,” said Brett Lindsey, President and Chief Executive Officer, Everstream. M/C initially acquired Everstream from a non-profit in 2015 and has since supported the business in its accelerated organic growth strategy as well as its acquisitions of two major Michigan-based fiber network operators.
“We are excited to join forces with AMP Capital,” Lindsey continued. “With their support, Everstream looks forward to continued positive growth through acquisitions, greenfield network builds and organic growth in our existing markets.”
AMP Capital is a global investment manager headquartered in Australia with a growing international presence, including in North America. In the U.S., AMP Capital has offices in New York, Chicago and Irvine, California. Its U.S. infrastructure equity investments include Chicago’s Millennium Garages, the largest underground parking system in the U.S., and ITS ConGlobal, a leading shipping and intermodal terminal operator.
“Everstream will be our platform for the consolidation of telecom assets in North America and we are excited about the opportunity to invest in the U.S. telecom sector and grow the business,” said Dylan Foo, Head of Americas Infrastructure Equity, AMP Capital.
“We continually look for quality investments on behalf of our clients. Our focus remains on the middle market, which is where we see the greatest value and opportunity,” Foo continued. “Communications infrastructure has become an essential service in the modern world, including Fiber, Wireless and Data Centers. AMP Capital has a strong global pedigree in this target sector, and we are pleased to secure our first North American Fiber asset.”
The transaction is expected to close in the second quarter of 2018 once necessary regulatory approvals are obtained. Everstream plans to utilize the investment from AMP Capital for acquisitions and to fund organic network growth and development.
“M/C has been investing in the fiber industry for over three decades and has worked with Brett on three transactions in the last 15 years,” said Gillis Cashman, Managing Partner, M/C Partners, and member of the Everstream Board of Directors. “We couldn’t be happier with the outcome of this investment and for the Everstream team.”
Evercore and MVP Capital served as lead financial advisers to Everstream and M/C Partners in connection with the transaction. Choate, Hall & Stewart and Thompson Hine served as legal counsel to Everstream and M/C Partners. Goldman Sachs served as financial advisor to AMP Capital and White & Case served as legal counsel.
Everstream is network service provider bringing fiber-based Ethernet, internet and data center solutions to businesses throughout the Midwest. We are the Business Fiber Network®. We focus on delivering best-in-class network solutions while providing an unrivaled commitment to customer service. With more than 10,000 route miles and comprehensive data center connectivity at 100 Gigabit speed, we provide the fastest network in our service areas. Everstream’s network allows businesses to operate a converged IP network capable of delivering robust voice, video, and data services at speeds from 10 Mbps to 100 Gbps. For more information, visit everstream.net.
About AMP Capital
AMP Capital is a specialist global investment manager with A$187.7 billion in funds under management as of December 31, 2017, and more than 250 investment professionals. AMP Capital has a heritage and strength in real estate and infrastructure, and specialist expertise in fixed income, equities and multi-asset solutions. It is a subsidiary of AMP Limited, which was established in 1849, and is one of Australia’s largest retail and corporate pension providers. For more information, visit ampcapital.com.au.
About M/C Partners
M/C Partners is a private equity firm focused exclusively on the communications, media and information technology sectors. The firm has invested over $2.2 billion of capital into over 130 companies in those sectors. Companies M/C has backed include Cavalier Telephone, Ensono, Everstream, Fusepoint, ICG Communications, Involta, Legendary Pictures, Lightower, MetroPCS, NuVox, Thrive and Zayo Group. The firm has strong institutional backing from the nation’s leading pension funds and endowments as well as a long track record of success. For more information, visit mcpartners.com.
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of $1.7 trillion (as of December 31, 2017), is a global leader in investment management. J.P. Morgan Asset Management’s clients include institutions, retail investors and high net worth individuals in every major market throughout the world. J.P. Morgan Asset Management offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity. JPMorgan Chase & Co. (NYSE: JPM), the parent company of J.P. Morgan Asset Management, is a leading global asset management firm with assets of approximately $2.5 trillion (as of December 31, 2017) and operations worldwide. Information about JPMorgan Chase & Co. is available at jpmorganchase.com. J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. and its affiliates worldwide.
About Morgan Stanley Alternative Investment Partners
Alternative Investment Partners Private Markets, an investment team within Morgan Stanley Investment Management, was established in 2000 and specializes in delivering unique and innovative private market solutions to a global client base. AIP Private Markets’ built-for-purpose investment team draws on its deep understanding of private markets strategies formed over decades of investment experience and seeks to apply this expertise and insight to bring thoughtful, opportunistic and innovative solutions to clients.
Morgan Stanley Investment Management, together with its investment advisory affiliates, has 608 investment professionals around the world and $482 billion in assets under management or supervision as of December 31, 2017. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide.