Covad sells to private equity firm for $304 million

COVAD SELLS TO PRIVATE EQUITY FIRM FOR $304 MILLION
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
Platinum Equity has purchased Covad Communications -- which offers telecommunications services such as DSL, voice over IP, broadband wireless, and Web hosting to Internet service providers and small and midsize businesses and home users -- for $304 million. Covad becomes the latest in a long line of technology companies to be gobbled up by private equity firms as they struggle to keep up in the competitive market. Once upon a time, Covad had been a high-flying telecom stock on Wall Street. But the company was hit hard when the dot-com bubble burst. Unfavorable regulatory rulings at the Federal Communications Commission didn't help matters much either as competition, especially from the big phone companies, increased. But even through bankruptcy, Covad managed to hang on while some of its competitors did not.
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