Filing Flows › Cogent Communications Holdings (CCOI) › Takeover & LBO
Is Cogent Communications Holdings (CCOI) a takeover target?
A leveraged buyout at today's price plus 30% ($11.10 a share) would return about 1% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $11.10 | today's $8.54 plus 30% |
| × shares | 48.4 million | |
| = Equity value | $538M | |
| + Debt refinanced | $1.7B | |
| − Cash | $149M | |
| = Enterprise value | $2.1B | 7.0× EBITDA of $302M |
| Fees | $42.4M | 2% of the price |
| New debt | $1.4B | 4.6× EBITDA at 7.65% a year; the limit that binds: 65% of the price |
| Buyer's own money | $784M | 36% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $928M | $293M | $105M | $34.2M | $1.3B |
| Year 2 | $915M | $289M | $103M | $34.7M | $1.3B |
| Year 3 | $915M | $289M | $100M | $37.4M | $1.3B |
| Year 4 | $928M | $293M | $97.3M | $40.9M | $1.2B |
| Year 5 | $956M | $302M | $94.1M | $46.8M | $1.2B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 6.6× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $2.0B | |
| − Debt left | $1.2B | |
| = Buyer's equity | $810M | |
| Money multiple | 1.03× | on $784M put in |
| Buyer's yearly return (IRR) | 0.6% |
Price against return
What the buyer makes at other premiums over today's $8.54.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $9.39 | 3.3% |
| 20% | $10.25 | 2.0% |
| 30% | $11.10 | 0.6% |
| 40% | $11.96 | −0.7% |
| 50% | $12.81 | −2.1% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $957M | |
| EBITDA, last 12 months | $302M | 31.5% of revenue |
| Depreciation and amortization | $226M | |
| Capital spending | $158M | |
| Debt | $1.7B | |
| Cash | $149M | |
| Share price | $8.54 | on Oct 9, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows -3.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 21% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Cogent Communications Holdings would cost about $11.32 a share, $548M for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $10.25 | $496M |
| Median | 32.5% | $11.32 | $548M |
| High end (a quarter paid more) | 51.8% | $12.96 | $628M |
Cogent Communications Holdings' latest quarter
Cogent Communications Holdings, Q3 2026: revenue $231M (-4% year over year), operating margin -3.0%, net loss $29.8M, operating cash flow $3.8M. The chart follows the revenue to costs, profit and cash.
Questions
Is Cogent Communications Holdings being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Cogent Communications Holdings?
A leveraged buyout at today's price plus 30% ($11.10 a share) would return about 1% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Cogent Communications Holdings cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Cogent Communications Holdings would cost about $11.32 a share, $548M for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.