November 6, 2006 -- (WEB HOST INDUSTRY REVIEW) -- Web hosting and integrated voice and data communications provider Covad Communications Group (covad.com) has entered into an agreement to acquire most of the assets of Chicago-based broadband wireless provider DataFlo Communications (dataflo.net). The transaction is expected to close later this month and will be the sixth market added to Covad's broadband wireless coverage area, in an addressable market of over 170,000 small businesses.
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The acquisition complements Covad's existing broadband coverage area in the Chicago market, enabling the company to meet the data, voice and wireless needs of Chicago-area businesses. By adding broadband wireless to its portfolio of services, Covad can now target larger businesses with high-capacity service, with data speeds between 2Mbps and 45Mbps.
"By acquiring DataFlo, we will gain a wireless coverage area in Chicago where there is strong small and medium-sized business growth," says Patrick Bennett, executive VP of market development for Covad. "DataFlo's wireless network also complements our existing wireline coverage area in that market. By introducing wireless in Chicago we will also be able to meet the needs of larger businesses with our high-capacity service."
Covad now offers broadband wireless in 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 2006, DataFlo expects to generate approximately $1 million in revenue.
