Platinum Equity Adds Covad To Its Growing List of Telecom Acquisitions - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Infrastructure

Platinum Equity Adds Covad To Its Growing List of Telecom Acquisitions

Platinum Equity will pay $1.02 a share in cash, a 59% premium over the closing price of Covad's shares last Friday.

Covad Communications Group reported Monday that it has agreed to be acquired by Platinum Equity, which is adding to its roster of acquisitions, including many in telecommunications and communications markets.

Covad said Platinum Equity will pay $1.02 a share in cash in the deal, which represents a 59% premium over the closing price of Covad's shares last Friday; financial analysts said the acquisition will total $304 million.

Covad, a provider of integrated voice and data communications, markets a variety of products, including DSL, VoIP, T1, broadband wireless, Web hosting, dial-up, and bundled voice and data services.

"Our board of directors has determined that the substantial premium to the current market price provided by this transaction offers the best value for our stockholders," said Charles Hoffman, Covad's president and CEO, in a statement (pdf). He added that Covad's management believes Platinum will bolster Covad's business strategy and improve its market competitiveness, capital structure, and product and network capabilities.

Noting that Covad has a strong position in broadband delivery, Platinum's partner and head of global mergers and acquisitions, Johnny O. Lopez, said Platinum sees an opportunity for growing high-bandwidth services in the acquisition.

Platinum has acquired a long list of telecom and communications companies, including Altura Communication Solutions, Americatel, DCA Services, GeoLogic Solutions, Matrix Business Technologies, USRobotics, and Wireless Facilities' WFI deployment business.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Commentary
New Storage Trends Promise to Help Enterprises Handle a Data Avalanche
John Edwards, Technology Journalist & Author,  4/1/2021
Slideshows
11 Things IT Professionals Wish They Knew Earlier in Their Careers
Lisa Morgan, Freelance Writer,  4/6/2021
Commentary
How to Submit a Column to InformationWeek
InformationWeek Staff 4/9/2021
White Papers
Register for InformationWeek Newsletters
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Video
Current Issue
Successful Strategies for Digital Transformation
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
Slideshows
Flash Poll