Yes, but that probably represents considerations regarding minimizing Risk, not necessarilly Value.

Tom DeReggi
RapidDSL & Wireless, Inc
IntAirNet- Fixed Wireless Broadband


----- Original Message ----- From: "Gino A. Villarini" <[EMAIL PROTECTED]>
To: "'WISPA General List'" <wireless@wispa.org>
Sent: Monday, October 16, 2006 12:04 AM
Subject: RE: [WISPA] Covad Expands Broadband WirelessNetworkWithDataFloAcquisition


If I had a offer for 1.4x revenue in Cash, I would think about it... If I
had a offer for 1.7x cash, I would cash in ....

Gino A. Villarini
[EMAIL PROTECTED]
Aeronet Wireless Broadband Corp.
tel  787.273.4143   fax   787.273.4145

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On
Behalf Of Charles Wu
Sent: Sunday, October 15, 2006 11:42 AM
To: 'WISPA General List'
Subject: RE: [WISPA] Covad Expands Broadband Wireless
NetworkWithDataFloAcquisition

Out of curiosity -- how is 1.4x annual revenue considered "cheap"
Keep in mind...this is $$$ CASH $$$, not stock

-Charles

-------------------------------------------
WiNOG Wireless Roadshows
Coming to a City Near You
http://www.winog.com



-----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" <wireless@wispa.org>
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.


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