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| Covad Expanding Broadband Wireless Network Covad Communications Group has recently signed an agreement to acquire substantially all the assets of DataFlo Communications. The transaction with DataFlo is expected to close later this month and is subject to customary closing conditions and regulatory approvals. By expanding its presence in Chicago, Covad will add a sixth market to its broadband wireless coverage area, in an addressable market of over 170.000 small businesses. The acquisition of DataFlo also complements Covad's existing broadband coverage area in the Chicago market, enabling the company to satisfy the data, voice, and, now wireless, needs of Chicago-area businesses. The addition of broadband wireless to Covad's portfolio of services enables the company to target larger businesses with high-capacity service, with data speeds between 2 megabits per second and 45 megabits per second. 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. write your comments about the article :: © 2006 Networking News :: home page |