WASHINGTON -- Cogent Communications Group, Inc.
announced that it had purchased for $11.7 million the major assets of Tier-1
Internet service provider NetRail in bankruptcy. NetRail will operate as a
wholly-owned subsidiary of Cogent Communications. As a result of this
purchase, Cogent will continue to serve the majority of NetRail's customers.
Over the next several months NetRail's service will be integrated with
Cogent's national backbone and facilities.
Cogent, headquartered in Washington, DC, is a privately held high speed
Internet service provider providing end-to-end optical connectivity to the
Internet for businesses. NetRail, headquartered in Atlanta, is a provider of
Internet access service in eight U.S. cities.
Dave Schaeffer, chief executive officer of Cogent, said, "The acquisition
of the NetRail service will allow Cogent to integrate into the nation's
largest Internet protocol backbone operating at 80 Gigabits per second a
traditional Tier 1 Internet service provider. The combination of Tier 1
status and Cogent's high speed network will improve Cogent's ability to offer
cost-effective Ethernet Internet access to small- and medium-size businesses
in major metropolitan markets."Cogent Communications Inc.