Grain Management acquires majority stake in Michigan-based 123NET

Grain Management, LLC, a leading investment firm specializing in digital infrastructure, has announced its acquisition of a majority interest in Michigan-based 123NET, a top provider of fiber internet, colocation, and business voice services. This strategic acquisition positions Grain Management to enhance its portfolio in the broadband and communications sector, leveraging 123NET’s extensive network and services.

Founded in 1995, 123NET has established itself as a key player in Michigan’s connectivity landscape, constructing an impressive 3,100 route mile network that includes both long haul and dense metro fiber networks across Michigan’s largest cities. The company also operates Michigan’s largest carrier hotel along with high-density data centers in metro Detroit and Grand Rapids. Notably, 123NET hosts the world’s largest fee-free internet exchange and is ranked ninth in North America for overall traffic exchange.

Dan Irvin, CEO of 123NET, expressed enthusiasm about the growth and strategic investments that have shaped the company into one of the Midwest’s most significant telecom enterprises. “Grain is a sophisticated investor that shares our values and commitment to providing best-in-class service for Michigan businesses and communities,” Irvin stated. He highlighted the potential for expanded services and infrastructure improvements, including the development of A.I.-capable data centers and initiatives to enhance connectivity in underserved areas through BEAD funding.

Raghav Nayar, Managing Director at Grain, commented on the partnership, emphasizing the mutual respect and long-standing relationship between the two companies. “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 Nayar.

The leadership team at 123NET will remain in place, retaining a significant ownership stake, ensuring continuity in management and strategy. Bank Street LLC served as the exclusive financial advisor to 123NET for this transaction, facilitating a smooth acquisition process.

123NET is renowned for its robust data center, network, and voice services, serving over a dozen Fortune 500 companies and thousands of Michigan businesses. It is also home to the Detroit Internet Exchange (DET-iX) and the Grand Rapids Internet Exchange (GRR-iX), positioning it as a major player in North America’s connectivity landscape.

Grain Management, founded in 2007, is a global leader in broadband and digital infrastructure investment. With a team of experienced professionals, Grain is dedicated to strengthening communities through enhanced connectivity and the tech-enabled transformation of industries.