Shares of Cogent Communications Holdings Inc (NASDAQ:CCOI) moved higher in after-hours trading Monday, rising 6.2% following the company’s confirmation that it has completed the sale of a portfolio of data center properties for $225 million in cash.
The transaction was executed through Cogent Fiber, LLC, a subsidiary of Cogent Communications, which sold 10 data center facilities to a newly formed entity sponsored by I Squared Capital. The aggregate purchase price for the portfolio was $225 million, and the consideration was paid in cash.
The facilities included in the deal are spread across multiple U.S. metropolitan areas. The ten properties are located in Phoenix, Arizona; Anaheim, California; Burbank, California; Stockton, California; Atlanta, Georgia; Chicago, Illinois; Elkridge, Maryland; Kansas City, Missouri; Nashville, Tennessee; and Houston, Texas.
Cogent Communications is a facilities-based provider of Internet access and private network services. The company operates an all-optical IP network and provides services in 306 markets worldwide, according to the information provided alongside the sale announcement.
The company’s disclosure on the sale consisted of the completion notice and the list of assets involved in the transaction. The purchaser is described as a newly formed entity supported by I Squared Capital. The announcement focused on the transaction amount, the cash nature of the payment, and the geographic distribution of the sold facilities.
Market reaction was immediate in extended trading, with shares recording a 6.2% uptick after the closing announcement on Monday. The move in the stock price reflects investor response to the completed disposition of the specified data center portfolio.
While the statement communicates the transfer of assets and the monetary terms, it does not provide further detail on the company’s intended allocation of proceeds, any prospective change to service delivery or network footprint as a result of the sale, or other strategic implications for Cogent’s operations. Those items were not covered in the announcement.
Contextual note - The completed sale was described in the company filing as a cash transaction between Cogent Fiber, LLC and the I Squared Capital-sponsored buyer entity. Beyond the completion confirmation and the asset list, the communication did not include additional operational or financial disclosures.