Covad Acquires DataFlo
“Fixed broadband wireless service is one of Covad’s primary growth drivers and this announcement signals the next phase of our targeted national expansion,” said Patrick Bennett, executive vice president of market development for Covad. “By acquiring DataFlo, we will gain a wireless coverage area in Chicago where there is strong small and medium-sized business growth. DataFlo’s wireless network also complements our existing wireline coverage area in that market. By introducing wireless in Chicago we will also be able to meet the needs of larger businesses with our high-capacity service.”
Covad now offers broadband wireless in 6 markets nationwide: Chicago, Los Angeles, San Francisco, San Diego, Orange County, and Las Vegas.
Covad will acquire substantially all the assets of DataFlo for approximately $1.4 million in cash. For the full year 2006, DataFlo expects to generate approximately $1 million in revenue. In keeping with Covad’s profitability goals, the transaction is EBITDA accretive.
Covad Communications Inc.