Covad will be acquired by an affiliate of Platinum for $1.02 (USD) a share. |
| Web host Covad Communications Group Inc. announced that is has been acquired by Platinum Equity.The definitive agreement is is an all-cash transaction. Covad will be acquired by an affiliate of Platinum for $1.02 (USD) per share in cash. The agreement was unanimously approved by Covads board of directors following the recommendation of its special committee.
The transaction is expected to close by the end of the second quarter of 2008. The purchase price represents a 59 percent premium to the closing price of Covads shares on October 26, 2007. After a careful and extensive review of our strategic alternatives, 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, Charles Hoffman, Covads president and chief executive officer, said in a statement issued to the media. Furthermore, Platinums approach will bolster the successful execution of Covads business strategy while providing the resources and support necessary for sustained growth. We believe that the resulting increased market competitiveness, improved capital structure, and enhanced product and network capabilities best position our customers, partners, and employees for the future. |