News
Grain Management has agreed to acquire a majority interest in 123NET, a Michigan-based internet service provider (ISP).
By: Brad Randall, Broadband Communities
With more than 3,100 miles of fiber routes, and the ninth busiest internet exchange in North America, 123NET’s network assets weren’t the only highlights that stood out to Grain Management, a private investment firm that focuses on broadband infrastructure.
In an April 22 announcement, Grain announced their intent to acquire a majority interest in Southfield-based 123NET. Grain’s release described 123NET as a company that has been on the forefront of connectivity in Michigan.
“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,” said Raghav Nayar, Managing Director at Grain.
As part of the deal, 123NET’s leadership team will stay put and “retain a meaningful ownership position,” according to Grain.
Nayar said Grain’s partnership with 123Net followed a multiyear bilateral relationship between Grain and 123NET’s “experienced management team.”
Dan Irvin, the CEO of 123NET, was also quoted in Grain’s announcement.
“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,” he said.
Irvin called Grain a “sophisticated investor” that shares 123NET’s values of delivering top-notch service to Michigan.
“Together, our capable teams and combined resources will better enable us to serve current customers while attracting new opportunities, including expanding our high-density, A.I.-capable data centers and pursuing BEAD funding to improve affordable, reliable connectivity to unserved and underserved areas,” he said, according to Grain’s release.
With data centers in Grand Rapids and Detroit, 123NET also operates the world’s largest “fee-free” internet exchange, Grain’s release stated.
Companies included with Grain’s portfolio of investments include Ritter Communications, Great Plains Communications, and Cincinatti Bell Wireless, according to Grain’s website.
