Covad to acquire NextWeb for $23 mln Wed Oct 5, 2005 06:56 AM ET
Oct 5 (Reuters) - Covad Communications Group (DVW.A: Quote, Profile, Research) , a provider of integrated voice and data communications, on Wednesday said it agreed to acquire Internet provider NextWeb Inc. for about $23 million in cash and stock. Covad also said it would assume $1.7 million in net debt under the deal. "Our acquisition of NextWeb accelerates Covad's entry into the emerging wireless broadband market," Covad Chief Executive and President Charles Hoffman said in a statement. The deal, which includes $4 million in cash and $19 million in Covad shares, is expected to close by the end of the year. Covad said a portion of its shares to be issued would be restricted from sale in the open market for a period of time. Privately held NextWeb is California's largest fixed-wireless service provider for business. Shares in Covad closed at $1.05 on Tuesday on the American Stock Exchange. (Reporting by Renu Pariyadath in Bangalore)
