Covad offers telecommunications services such as DSL, voice over IP, broadband wireless, and web hosting to ISPs, SMBs, and home users.
Platinum’s approach will bolster the successful execution of Covad’s business strategy while providing the resources and support necessary for sustained growth, said Charles Hoffman, president and CEO at Covad. He added, 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.
In the recent past communications companies are shifting from a publicly traded enterprise to a privately-held operation. In June 2007, Avaya was acquired by Silver Lake Partners and TPG for $8.2bn in cash and in September 2007, the networking vendor 3Com was acquired by private equity firm Bain Capital, for $2.2bn. In a similar type of acquisition Alltel Corporation was acquired by private equity firms TPG Capital and the Goldman Sachs Group for $27.2bn.
Source: ComputerWire daily updates
