Cogent will buy Allied Riser

Cogent Communications Group and Allied Riser Communications (ARC) jointly announced today a definitive agreement that calls for Cogent to purchase ARC, which will become a wholly owned subsidiary of the Washington, D.C.-based optical Ethernet services provider.

The in-building networks of ARC, a Dallas-based building local exchange carrier, will be added to Cogent’s backbone and facilities. Holders of ARC common stock will receive shares of common stock. ARC’s convertible subordinated notes will become convertible into Cogent common stock upon completion of the merger, which is subject to the approval of the shareholders of both companies.

Jerry Dinsmore, ARC’s president and CEO, said the combined company would be “stronger than each company alone.” Last month, ARC cut 75% of its work force--about 290 employees--in a cost-cutting move.

--Glenn Bischoff, senior writer