Cogent Communications Holdings, Inc. announced in its proxy statement that the integration of Sprint's expansive 20,000+ route mile long-haul network into its global fiber-optic infrastructure is nearing completion. Former Sprint facilities, spanning 1.36 million square feet and connected to over 127 megawatts of power, have been successfully converted into data centers for lease or sale. The operational integration of the two companies has largely concluded, positioning Cogent for long-term growth.
The company achieved a historic milestone in 2024 by extending its optical wavelength service to more than 800 data centers across North America. Cogent also surpassed its cost-saving objectives for the Sprint acquisition, realizing annual cost savings of approximately $217 million well ahead of schedule. The leasing of IPv4 addresses, including an acquired portfolio of over 9.9 million addresses, continues to be a high-margin revenue stream, increasing the total available inventory to approximately 38 million IPv4 addresses.
The Board extended the CEO's employment agreement through December 31, 2027, and amended his performance-based compensation metrics for 2025. Annual cash compensation goals now include gross profit and the sale of optical wave and optical transport services. Long-term performance-based equity awards, comprising over 50% of his equity compensation, shifted from EBITDA and total shareholder return targets to multi-year growth targets for EBITDA and free cash flow.
For the upcoming Annual Meeting on May 7, 2025, the Board recommends approving amended bylaws to fix the Board size between six and eight directors. Additionally, stockholders will vote on increasing the shares available for issuance under the 2017 Incentive Award Plan by 1.5 million shares and ratifying Ernst & Young LLP as the independent registered public accountants for fiscal year 2025.
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