EarthLink and Covad Snap Up FirstWorld's DSL Subscriber Base
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Web hosting and services provider Verado (Nasdaq: VRDO) says it is selling its FirstWorld Internet Services' digital subscriber line (DSL) customer base to EarthLink (Nasdaq: ELNK)and Covad (OTC BB: COVD) for an undisclosed amount of cash.
The deal affects Verado's FirstWorld Internet Services customers located primarily in the western United States.
The company says it is letting go of the DSL customers an divest its non-core business assets focus more on its Web hosting, managing and professional services.
This is not the first time Denver, Colo.-based Verado has dumped its customers off on other companies. EarthLink scored some 125,000 dial-up customers back in April 2001.
The acquisitions follow Verado's announcements last quarter of its exit from telephony operations in Anaheim, Calif. and the sale of its Optec Web integration business.
To add insult to injury, Verado executives were warned by Nasdaq officials this week that the company's per-stock price was below the minimum $1 price for too long and may be de-listed from its trading floor.
Now, Santa Clara, Calif.- based Covad and Atlanta-based EarthLink are working together to smoothly move FirstWorld customers to their systems. The migration should be wrapped up by the end of August.