CCOI
Cogent trims the real estate bloat
Cogent Communications’ subsidiary, Cogent Fiber, is selling 10 U.S. data center facilities to a newly formed entity backed by I Squared Capital. The price tag: $225 million in cash. Not exactly pocket change.
Why this matters
For investors, asset sales like this can be a two-for-one: they bring in cash and can hint that management wants to streamline the business. That can mean fewer capital headaches, more flexibility, or just a cleaner story for the market to price.
The bigger picture
Cogent has long been known as a facilities-heavy operator, so shedding data centers may be part of a broader rethink of what assets it really wants to own versus rent, operate, or monetize. If you own the stock, this is the kind of move that can reshape the long-term margin and cash-flow narrative.
Big picture: sometimes the fastest way to grow strategic optionality is to sell the stuff sitting on your balance sheet.