RealTime IT News

Today's Deals: Covad Heading into Spain

Baltimore Technologies + Content Technologies, Covad Communications + Loop Telecom, Homestore.com + The Hessel Group, O2, Essential Marketing Technologies + LookSonic.com, vitacost.com + MotherNature.com, Watchout! + Cormax Businesss Solutions

 Covad Communications (COVD) purchases stake in Loop Telecom


   *  Amount:         $50 million


   *  Terms:            n/a


   *  Premium:        n/a


   *  Industry:        ISPs/Access providers


   *  Scorecard:      B


    SANTA CLARA, Sept. 14--Covad Communications , a U.S.-based broadband services provider utilizing DSL technology, and its newly formed Covad Communications International, B.V., announced its first European investment, an agreement to purchase a majority share of Loop Telecom, Spain's first full-service broadband service provider for small and medium sized businesses. Under the agreement, Covad will acquire Loop Holdings Europe AsP, which holds shares representing a 70% interest in privately held Loop Telecom, for $15 million US and notes for additional payments of $15 million US six months after close and $20 million US one year after close.