Cogent Communications Holdings, Inc. · NASDAQ:CCOI
Cogent Communications — Merger or Acquisition (September 2022)
14 slides from Cogent Communications's merger presentation, Sep 7, 2022
Slide 1: Buy Dumb Pipes
cegen Buy Dumb Pipes
Slide 2: Disclaimer
Disclaimer Cautionary Statement Regarding Forward-Looking Statements Except for historical information and discussion contained herein, statements contained in this presentation constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such sta
Slide 3: The Transaction
The Transaction Sprint Wireline (Formerly Known as Sprint Global Cogent Markets Group) • Approximately $560 million in revenue in 2021 Pays $1.00* as purchase price, subject to customary • Approximately 1,300 employees adjustments for net debt and net working capital. Products Cogent will not be iss
Slide 4: Sprint Wireline North American Network
Sprint Wireline North American Network 20,305 Route Miles Owned 16,843 Route Miles Leased 4
Slide 5: Timeline
Timeline September 6, 2022 Execution of September 7, definitive agreement (Anticipated closing between 9 Targeted Closing 2022 Public between T-Mobile announcement and 15 months from agreement, in or prior to and Cogent of transaction depending on regulatory approval) December 2023 Between Signing a
Slide 6: Benefits to Cogent
Benefits to Cogent • Strategic • Technical • Expanded Product Set & Market Reach • Financial 6
Slide 7: Strategic Benefits
Strategic Benefits • Increased fiber network footprint will be owned in fee simple rather than leased under IRUs with finite terms. • Increased scale in the DIA, Transit, Virtual Private Networks (MPLS → VPLS) and Colocation/Data Center market spaces. • Entry into North American market for wavelengt
Slide 8: Technical Benefits
Technical Benefits • Integration of Cogent’s network with the legacy Sprint Wireline network will substantially expand Cogent’s footprint, as well as adding ownership of 47 new facilities, aggregating to over 1,000,000 square feet. • Network integration is anticipated to result in elimination of red
Slide 9: Expanded Product Set & Market Reach
Expanded Product Set & Market Reach • Cogent is expected to acquire the legacy Sprint customer base of approximately 1,400 business enterprises, outside of Cogent’s typical customer profile. • Cogent will enter the market for sales of wavelengths, currently estimated at $2 billion annually, now domi
Slide 10: Financial Benefits
Financial Benefits • Scale: Post-closing, Cogent expects its revenue base will be approximately $1.1 billion, or 180% of Cogent’s current $600 million run rate. The multi- year revenue growth target for Cogent post-closing will be 5-7% annually, with targeted aggregate revenue of over $1.5 billion b
Slide 11: Financial Benefits (continued)
Financial Benefits (continued) • While Sprint Wireline business has historically not delivered optimal EBITDA margin performance, post-closing, Cogent targets a long-term 100 basis point per year EBITDA margin expansion off of a larger revenue base and lower initial EBITDA margin, based on the combi
Slide 12: Commitments
Commitments In the Interim Period: • T-Mobile is committed to providing high-quality service to all of the Sprint Wireline customers and both parties are committed to minimizing any transition impacts. Following Closing: • Cogent expects to offer higher capacity and improved services to the acquired
Slide 13: Summary – This Transaction…
Summary – This Transaction… • Transforms Cogent into a larger, facilities-based carrier through ownership of its own nationwide network. • Provides entry to the currently estimated $2 billion annual market for wavelengths. • Provides entry to the market for dark fiber sales. • Increases the number o
Slide 14: Cogent Communications Holdings, Inc.
Cogent Communications Holdings, Inc.
Cogent Communications Holdings — Merger or Acquisition (September 2022) on 6ix