Today’s Deals: Covad Heading into Spain

  
* 
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.
• 
  
•  

  
* 
Amount:        
Undisclosed

  
* 
Terms:           
n/a

  
* 
Premium:        n/a

  
* 
Industry:       
Content/Communities

  
* 
Scorecard:      A-

• 
  
• 
  THOUSAND OAKS, Sept. 14–Homestore.com,
  an Internet home and real estate network, announced that it has acquired
  The Hessel Group, a provider of technology-driven solutions and
  services to the relocation industry. For over a decade, the Hessel Group
  has provided services to many Fortune 500 companies and their transferring
  employees as well as relocation management organizations that support them.
  Homestore.com will integrate THG
  into a new unit to be called Homestore Mobility Technologies. Financial
  terms were not disclosed.
• 
  
•  

  
* 
Amount:         $992
million

  
* 
Terms:           
91 million shares

  
* 
Premium:        n/a

  
* 
Industry:        Security

  
* 
Scorecard:      B-

• 
  
• 
  LONDON, Sept. 14–Baltimore Technologies,
  the Irish e-security company, announced that it has signed a definitive
  agreement to acquire U.K.-based Content Technologies Holdings to
  boost its offering of security products to corporate customers. The total
  consideration is 91 million Baltimore
  Technologies’ shares, valuing Content Technologies at
  approximately $992 million.
• 
  
•  

  
* 
Amount:        
Undisclosed

  
* 
Terms:           
n/a

  
* 
Premium:        n/a

  
* 
Industry:        Internet
services

  
* 
Scorecard:      C

• 
  
• 
  MARINA DEL REY, Sept. 14–O2, Essential Marketing
  Technologiesannounced plans to acquire a controlling
  majority interest
• in LookSonic.com, a developer of a commercial
  builder technology that empowers an Internet business to sell, build and
  implement Internet commercials on their web site quickly and efficiently.
  The deal is intended to help position O2 to become a leader in providing
  interactive marketing technologies for content rich web site businesses and
  offline businesses seeking highly effective Internet marketing. Under the
  terms of the deal, O2 will acquire 50.1% of LookSonic.com in exchange for the
  issuance of options to purchase 150,000 shares of O2 at 8 1/2.
• 
  
•  

  
* 
Amount:         $6.2
million

  
* 
Terms:           
stock swap

  
* 
Premium:        n/a

  
* 
Industry:       
Consultants/Designers

  
* 
Scorecard:      C

• 
  
• 
  CALGARY, Alberta, Sept. 14–High-Technology Incubator
  Watchout!has acquired Cormax Business
  Solutions, developer of Watchout!’s new Web site
  launched this past July, in a $6.2-million (USD) share exchange. The
  positioning of Cormax Business
  Solutions’ executives is expected to direct the development of Watchout!, establishing a solid
  foundation and sound business practices for the corporation, while
  enhancing share value. Terms of the transaction were not disclosed.
• 
  
•  

  
* 
Amount:        
Undisclosed

  
* 
Terms:           
n/a

  
* 
Premium:        n/a

  
* 
Industry:        E-tailers

  
* 
Scorecard:      n/a

• 
  
• 
  BOYNTON BEACH, Fla., Sept. 14–vitacost.com, an online
  wholesaler of nutritional supplements and comprehensive resource for
  nutraceutical information, announced that it has submitted a formal offer
  letter to merge with MotherNature.comon a
  one-for-one share basis. Vitacost.com
  presently has approximately 27,425,000 shares outstanding, and MotherNature.com approximately
  15,153,590.
• 
  
•