On 3rd March, 2008, Platinum Equity announced an acquisition deal with Covad Communications Group Inc.. The deal is expected to be completed within 2 months after receiving approval from Federal Communications Commission and the State Public Utility Commissions.
Platinum Equity Business Deals refer to the business deals made by Platinum Equity. Most recently, this Platinum Equity made an acquisition deal with Covad Communications Group Inc., provider of voice and data communications system. This acquisition deal was announced on 3rd March 2008.
Profile of Covad Communications Group Inc.
Covad Communications Group Inc. basically provides integrated voice systems and data communication systems. The other services offered by Covad Communications Group Inc. are the following:
Voice Over IP
IP and Dial Up Services
Web Hosting Services
Wireless Broadband Services
Covad Communications Group Inc. provides all these services to small businesses, mid-size businesses and individual users, not only through its’ own network but also through different Internet Service Providers.
The Details of the Acquisition Deal
The announcement of the acquisition deal made it clear that Platinum Equity was going to acquire Covad Communications Group Inc..To decide on this acquisition deal, Covad Communications Group Inc. held a special meeting among its’ shareholders on 3rd March in Santa Clara, California. In this special meeting, the major shareholders approved the planned acquisition deal. After that, the deal was publicly announced.
It was decided that through this acquisition deal, Platinum Equity will buy all the outstanding shares of Covad Communications Group Inc., at a price of $1.02 per share.
But, the acquisition deal will finally complete only after fulfillment of customary closing conditions. The final closing of the acquisition deal also depends on the approval of State Public Utility Commissions of the states in which Covad Communications Group Inc. runs its’ operations.
The completion of the acquisition deal also requires permission from Federal Communications Commission. On 3rd March, 2008, Covad Communications Group Inc. informed that it has completed the application procedure and is expecting to receive the approvals within 30 to 60 days.