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Bluebird Fiber to Acquire Everstream Assets in “Stalking Horse” Agreement

Business-only fiber network Everstream has agreed to sell “substantially all of its operations” to an affiliate of Bluebird Fiber, a regional business-focused connectivity provider.

The announcement of the acquisition says that the two firms have come to a “stalking horse” agreement, which Investopedia describes as follows: “The bankrupt company will choose an entity from a pool of bidders who will make the first bid on the firm’s remaining assets.” Everstream hopes to expedite the transaction by voluntarily entering chapter 11 proceedings in the United States Bankruptcy Court for the Southern District of Texas. 

Everstream says it will operate as usual during the transition to Bluebird Fiber via a $55 million commitment it has for debtor-in-possession financing from existing lenders. If the court approves the financing, the funds will be combined with existing cash on hand to fund operations until the sale closes.

“As we focus on advancing our core market optimization strategy, we have determined that a sale of our business is the best path to ensure Everstream meets the evolving connectivity needs of the businesses we serve for years to come,” Everstream CEO Ken Fitzpatrick said in the press release about the Bluebird Fiber acquisition. 

“Under new ownership, we can continue to invest responsibly across our core markets for the benefit of our valued customers, employees, and other stakeholders.”

This was not the first indication that Everstream was exiting the business. In a move last October, which was mentioned in this week’s press release, fiber-based network provider Segra acquired Everstream’s all-fiber network in the St. Louis metropolitan area. That network was almost 1,000 route miles. Terms of the transaction were not disclosed.

Bluebird Fiber, conversely, has been active even beyond the agreement to acquire Everstream. Last month, the company announced a connectivity partnership with Cuivre River Electric Cooperative, Missouri’s largest electric distribution cooperative serving more than 70,000 members. 

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