Cogent to buy T-Mobile's Wireline Business
Cogent Communications Holdings, Inc. (NASDAQ: CCOI) says it has agreed to buy T-Mobile's Wireline Business for an undisclosed sum. The deal, which a new subsidiary of Cogent will consummate, is expected to close in the second half of 2023, subject to the usual regulatory approvals and closing conditions.
Cogent will acquire the business unit’s fiber network and related assets as well as what the company called “certain liabilities associated with the business.” The sales agreement also establishes that, post close, Cogent will supply IP transit services to T-Mobile for 54 months for a fee of $700 million. T-Mobile will pay the first $350 million in equal payments over the first 12 months after closing and the final $350 million in equal payments over the remaining 42 months.
The assets include the U.S. long-haul fiber network T-Mobile acquired when it merged with Sprint. Cogent sees the network as initially complementing, then replacing its current current leased network. The company also anticipates an expanded product set, including optical wavelength transport services, to address the needs of new and existing customers, including those that T-Mobile currently serves.
Cogent says it doesn’t expect to issue new debt or equity to finance the acquisition, which the company says shouldn’t prove dilutive to Cogent's existing stockholders. The acquisition also won’t affect current dividend per share, the company adds.
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Stephen Hardy | Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
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