Possibly, but if DataFlo was in distress then why would Covad want to buy them? Could have been DataFlow's HUB locations and existing foothold in a market etc.
Covad certainly has the ability to buy profitable operations. As crappy as 1.4x revenue sounds to people that are making a substantial profit in this industry it may have been the deal of the century for DataFlo. They might have just been breaking even etc. Revenue doesn't say much of anything about a company IMO. Bottom line profits are all that really matter. Best, Brad -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Tom DeReggi Sent: Saturday, October 14, 2006 9:54 PM To: WISPA General List Subject: Re: [WISPA] Covad Expands Broadband Wireless Network WithDataFloAcquisition Which sounds like to me, DataFlow was in a distressed state, doing a firesale.. Tom DeReggi RapidDSL & Wireless, Inc IntAirNet- Fixed Wireless Broadband ----- Original Message ----- From: "Matt Liotta" <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]>; "WISPA General List" <email@example.com> Sent: Friday, October 13, 2006 11:04 AM Subject: Re: [WISPA] Covad Expands Broadband Wireless Network With DataFloAcquisition > Does anyone know anything about DataFlo? According to the press release it > appears they were bought for 1.4x revenue, which seems awfully cheap. > > -Matt > > Peter R. wrote: >> Covad Communications Group Inc. announced it will acquire the assets of >> DataFlo Communications LLC, a Chicago-based broadband wireless provider, >> adding a sixth market to its coverage area. >> >> Covad will acquire substantially all the assets of DataFlo for >> approximately $1.4 million in cash. For the full 2006 year, DataFlo >> expects to generate approximately $1 million in revenue. In keeping with >> Covad's profitability goals, the transaction is EBITDA accretive. The >> transaction is expected to close later this month subject to customary >> closing conditions and regulatory approvals. >> >> Covad already offers broadband wireless to Los Angeles, San Diego, San >> Francisco, Orange County and Las Vegas through its wireless subsidiary >> NextWeb, which it acquired earlier this year. >> >> Speaking at the Internet Telephony Conference & Expo today, Claude >> Tolbert, Covad's senior vice president of product solutions planning and >> priorities, said the acquisition of NextWeb was primarily in response to >> regulatory uncertainty over the company's access to incumbent broadband >> networks. With that concern ameliorated, he said, the DataFlo deal is >> more of a continuation of an overlay network strategy. >> >> Broadband wireless allows the company to provide higher-capacity >> services. It can offer 100mbps on unlicensed band and 10mbps on licensed >> bands - speeds unavailable with DSL. Broadband wireless also enables >> Covad to turn up services more quickly, reducing intervals from 25 days >> for wireline to 10 days for wireless. It also enables the company to >> serve clientele with temporary needs. >> >> Tolbert said the DataFlo network is pre-WiMAX and serves businesses via a >> direct sales force. This distribution strategy, he added, will help Covad >> to balance its predominantly wholesale focus. >> > > -- > WISPA Wireless List: firstname.lastname@example.org > > Subscribe/Unsubscribe: > http://lists.wispa.org/mailman/listinfo/wireless > > Archives: http://lists.wispa.org/pipermail/wireless/ > > > -- > No virus found in this incoming message. > Checked by AVG Free Edition. > Version: 7.1.408 / Virus Database: 268.13.3/474 - Release Date: 10/13/2006 > > -- WISPA Wireless List: email@example.com Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ -- WISPA Wireless List: firstname.lastname@example.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/