Platinum Equity to acquire Covad Communications Group in cash transaction

Oct 29, 2007 (M2 EQUITYBITES via COMTEX) -- DVW | charts | news | PowerRating -- Covad Communications Group Inc (AMEX:DVW), a provider of integrated voice and data communications, announced on Sunday (28 October) that the company has signed a definitive agreement to be acquired by Platinum Equity, a mergers and acquisitions firm, in an all-cash transaction.

Under the terms of the acquisition agreement, which was unanimously approved by the company's board of directors, an affiliate of Platinum Equity will acquire Covad for USD1.02 per share in cash.

The purchase price reportedly represents a 59% premium to the closing price of Covad's shares on 26 October 2007.

The transaction, which is expected to close by the end of the second quarter of 2008, is subject to the approval of Covad's shareholders and customary closing conditions.

Barclays Capital served as lead financial advisor to Covad in this transaction.

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