Covad agrees to$304 million buyout

Covad Communications has agreed to be acquired by Platinum Equity for $304 million, a deal which extends two ongoing trends: Private equity investments and acquisitions in telecom, and the consolidation of the CLEC market. Covad has survived a great deal of telecom industry turbulence over the years, but factors such as naked DSL, access charge forbearance and local/long-distance re-unification have made it still more difficult for non-incumbent telcos to compete.

Meanwhile, Covad also has broadband wireless assets and an enterprise market foothold that position it well for the future. Can a private equity firm help it find--and fund--the opportunities that allow it to thrive in the land of telecom giants?

For more:
- Telephony has the story

Related articles:
- Reports circulated recently that Best Buy might buy Covad

Suggested Articles

Liberty Global-owned Virgin Media is looking to expand its fiber network beyond urban areas in the U.K. via a wholesale fiber network joint venture. The…

Microsoft announced on Monday that it is investing $1 billon with OpenAI to develop large-scale AI solutions for Microsoft Azure.

Verizon is giving its enterprise customers faster provisioning times with the launch of its Software-Defined Interconnect (SDI) solution.