Grain Management, the Washington, D.C.-based telecommunications investment management firm, announced that it has agreed to acquire a majority interest in 123NET, an internet service provider based in Southfield, MI. 123NET provides Fortune 500 companies and Michigan-based businesses with data center, network connectivity, and voice services. This transaction is in line with Grain’s investments in digital infrastructure. In March, Grain along with Blackrock (NYSE: BLK) made a strategic investment in Phoenix Tower International, Inside Towers reported.
Since its founding in 1995, 123NET has built a 3,100 fiber route-mile network that includes intercity long-haul facilities and dense metro fiber networks in Michigan’s largest cities. 123NET’s network provides connectivity to what is dubbed as Michigan’s largest carrier hotel being developed in downtown Detroit and the company’s two high-density, carrier-neutral data centers – Detroit Internet Exchange and the Grand Rapids Internet Exchange. At these data centers, 123NET has peering arrangements with technology leaders such as Google, AWS, GM and others.
“123NET’s operations have continuously grown through a series of strategic investments that ultimately created one of the Midwest’s largest and most significant telecom enterprises,” said Dan Irvin, 123NET CEO. “Together [with Grain], our capable teams and combined resources will better enable us to serve current customers while attracting new opportunities, including expanding our high-density, AI-capable data centers and pursuing BEAD funding to improve affordable, reliable connectivity to unserved and underserved areas.”
Raghav Nayar, Managing Director at Grain comments, “We think very highly of the disciplined, analytics-driven culture at 123NET, and we believe our synergy enables us to achieve even greater results together.”
Terms of the transaction were not disclosed. Bank Street LLC serves as exclusive financial advisor to 123NET in connection with the transaction. 123NET’s leadership team will remain in place and retain what the company calls “a meaningful ownership position.”
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