Platinum Equity Completes Acquisition of Covad Communications Group, Inc.

Tue Apr 15, 2008 3:14pm EDT

* Reuters is not responsible for the content in this press release.

LOS ANGELES & SAN JOSE, Calif.--(Business Wire)--
Platinum Equity announced today it has completed the acquisition
of Covad Communications Group, Inc., a leading national provider of
integrated voice and data communications. The total value of the
transaction is approximately $470 million.

   The acquisition was a public-to-private transaction in which an
affiliate of Platinum Equity acquired all outstanding shares of Covad
stock for $1.02 per share in cash. The company previously traded on
the American Stock Exchange under the ticker symbol DVW.

   "Covad has been an innovator since the day it became the first
enterprise to commercially deploy DSL in the United States," said
Johnny O. Lopez, partner for Platinum Equity. "We have high
expectations for the company's continued growth and market
leadership."

   The companies announced the planned acquisition in October 2007
and have spent the last several months obtaining the required
regulatory and stockholder approvals.

   Covad owns and operates the largest national broadband network and
is the only national facilities-based provider of data, voice, and
wireless telecommunications solutions for small and medium-sized
businesses. Covad is also a key supplier of high-bandwidth access for
telecommunications services providers like EarthLink, AT&T, and
Verizon Business. Covad services are currently available in 44 states
and 235 major markets and can be purchased by more than 57 million
homes and businesses.

   About Covad

   Covad is a leading nationwide provider of integrated voice and
data communications. The company offers DSL, Voice Over IP, T1,
broadband wireless, Web hosting, managed security, IP and dial-up, and
bundled voice and data services directly through Covad's network and
through Internet Service Providers, value-added resellers,
telecommunications carriers and affinity groups to small and
medium-sized businesses and home users. Covad broadband services are
currently available across the nation in 44 states and 235
Metropolitan Statistical Areas (MSAs) and can be purchased by more
than 57 million homes and businesses, which represent over 50 percent
of all US homes and businesses. Corporate headquarters is located at
110 Rio Robles San Jose, CA 95134. Telephone: 1-888-GO-COVAD. Web
Site: www.covad.com.

   About Platinum Equity

   Platinum Equity (www.platinumequity.com) is a global M&A&O(R) firm
specialized in the merger, acquisition and operation of companies that
provide services and solutions to customers in a broad range of
business markets, including information technology, software,
telecommunications, logistics, manufacturing, metals services and
distribution. Since its founding in 1995 by entrepreneur Tom Gores,
Platinum Equity has completed more than 75 acquisitions with more than
$23 billion in aggregate annual revenue at time of acquisition.

Covad Communications
Michael Doherty, 408-952-7431 (Media and Investors)
mdoherty@covad.com
or
Platinum Equity
Mark Barnhill, 310-228-9514 (Media and Investors)
mbarnhill@platinumequity.com

Copyright Business Wire 2008
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