M/C Partners, J.P. Morgan invest in Everstream Solutions

M/C Partners and investors advised by the private equity group of J.P. Morgan Asset Management have invested $50 million in Everstream Solutions, a subsidiary of OneCommunity. As part of the deal, Everstream will acquire a majority of the fiber assets owned by OneCommunity and emerge as a standalone organization. OneCommunity, a non-profit that works to bring fiber-based services to healthcare, government and education customers, will retain a minority interest in Everstream and receive funds to support its work.

Press Release

Everstream Solutions LLC, a subsidiary of OneCommunity, announced today that it will receive a $50-million investment from Boston-based M/C Partners and investors advised by the Private Equity Group of J.P. Morgan Asset Management. The transaction is scheduled to close October 15, 2015, with the investment providing capital 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. Investment banking firm Media Venture Partners advised OneCommunity on the transaction.

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.

“Our ability to access the private equity market to fund our expected growth is key to the success of the network and our continued support of hundreds of organizations across Northeast Ohio. This transaction also means more jobs in Cleveland, investment in the network and opportunity for our local partners,” said Lindsey.

“This transaction is part of our long-term effort to invest in viable fiber service providers in underserved markets that have tremendous potential for growth,” said Gillis Cashman, managing partner, M/C Partners. “We see a very strong opportunity in this market, and through this investment and the restructuring of the company, we are confident Everstream will experience positive growth and expansion.”

OneCommunity has been investing in Northeast Ohio for over a decade through a number of local and federal grants. “This transaction allows OneCommunity to leverage the fiber network as a catalyst for growth and an asset upon which to shape a civic agenda around community and business technology priorities in Northeast Ohio”, said Gonick. “OneCommunity is well-positioned for years to come in our pursuit of a robust digital economy across Northeast Ohio, and this deal represents the next stage of evolution for our organization,” said Gonick.

The team that provides day-to-day support to all of the existing customers and network operations will be part of Everstream going forward. Certain customer contracts and fiber assets will remain with OneCommunity and be managed by Everstream under a five year services agreement. The transaction is scheduled to close October 15, pending state and federal government approval.

About Everstream
Everstream is a Cleveland based network service provider bringing fiber-based Ethernet, Internet and data center solutions to business customers throughout Northeast Ohio. 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. For more information, visit Everstream.net.

About OneCommunity
OneCommunity is a nonprofit organization whose mission is to grow a digital economy and improve the quality of life in Northeast Ohio. OneCommunity’s vision is that advanced digital capabilities and effective use of technology will help transform the region and establish it as a national hub for innovation and economic growth. For more information on OneCommunity, please visit www.onecommunity.org.

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 $1.5 billion into nearly 100 companies in those sectors. Companies M/C has backed include Cavalier Telephone, Fusepoint, GTS Central Europe, ICG Communications, Involta, Legendary Pictures, Lightower, MetroPCS, NuVox, Open Mobile, 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. M/C Partners has offices in Boston and San Francisco. For more information, visit www.mcpartners.com.

About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of $1.6 trillion, 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 $2.4 trillion and operations in more than 60 countries. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com. J.P. Morgan Asset Management is the marketing name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.

About Media Venture Partners
Media Venture Partners (“MVP”) is an investment banking firm serving companies in the communications, technology, media and renewable energy sectors with a comprehensive array of services, including merger and acquisition advisory, debt and equity financing, and restructuring advisory. Founded in 1987, MVP has offices in San Francisco, Boston, New York, Boulder and Kansas City.

SOURCE M/C Partners