San Jose, California – (The Hosting News) – April 2, 2008 – Web host and national provider of integrated voice and data communications firm, Covad Communications Group, Inc., has obtained all of the required regulatory approvals for the proposed acquisition of Covad by an affiliate of Platinum Equity.
The approvals were provided by the Federal Communications Commission and a number of state public utility commissions. At a Special Meeting of Stockholders, held February 29, 2008, holders of a majority of the company’s outstanding shares approved the agreement and plan of merger pursuant to which an affiliate of Platinum Equity will acquire all outstanding shares of Covad for $1.02 per share in cash. The parties expect to close the transaction on April 15, 2008.
Late last year, Covad extended its Line Sharing Agreement with AT and T. The Agreement will continue to May 2009, and also includes extentions of the commercial terms as to former BellSouth territory, and guarantees access to AT and T copper and remote-terminal facilities for new Covad line share customers. The agreement also provides for commercial access to AT and T copper facilities in the former Bellsouth territory, also through May 2009. Covad and ATT also resolved a number of disputes.
Platinum Equity is a global M and O firm specialized in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, software, telecommunications, logistics, manufacturing, metals services and distribution. Since its founding in 1995 by entrepreneur Tom Gores, Platinum Equity has completed more than 75 acquisitions with more than $23 billion in aggregate annual revenue at time of acquisition.
Covad is a nationwide provider of integrated voice and data communications, offering DSL, Voice Over IP, T1, broadband wireless, web hosting, managed security, IP and dial-up, and bundled voice and data services directly through its network and Internet Service Providers, value-added resellers, telecommunications carriers and affinity groups to small and medium-sized businesses and home users. Covad broadband services are currently available across the nation in 44 states and 235 Metropolitan Statistical Areas (MSAs) and can be purchased by more than 57 million homes and businesses, which represent over 50 percent of all US homes and businesses. Corporate headquarters is located at 110 Rio Robles San Jose, CA 95134. Telephone: 1-888-GO-COVAD.
To learn more about Platinum Equity, please visit: www.platinumequity.com.
For more information about Covad, please visit: www.covad.com.