Frequently Asked Questions
Topics
Is this a merger or an acquisition?
When will the deal close?
Will the company remain
Covad under the new ownership?
What does this mean for Covad’s business moving forward?
Will there be any immediate changes to products, pricing, or support?
What does this announcement mean for Covad customers?
Will customers continue to use the same resources (e.g., support, customer care,
SMART) used today?
Is this a merger or an acquisition?
Covad has agreed to be acquired by Platinum Equity in an all-cash transaction.
When will the deal close?
The transaction is subject to the approval of Covad’s stockholders and the satisfaction of
customary closing conditions, including the approval of the Federal Communications Commission and
state public utility commissions in many of the states where Covad does business. The transaction
is expected to close by the end of the second quarter of 2008.
Will the company remain
Covad under the new ownership?
Yes. There are no immediate plans to change the company brand.
What does this mean for Covad’s business moving forward?
Covad is working on several growth initiatives that require sustained investment in order to
expand, reach scale and become profitable. Covad believes it has additional growth and profit
potential with the improved capital structure made possible by the acquisition.
Will there be any immediate changes to products, pricing, or support?
Covad is pursuing this transaction with a buyer that values the company and wants to retain
existing customers and partners and attract new ones. We will continue to provide the same great
service. Covad will be able to scale and grow alongside our customers and continue to provide them
with the solutions they need.
What does this announcement mean for Covad customers?
This announcement is positive for customers. Once the deal closes, Covad will operate with a
greater ability to make investments in our growth strategy due to the improved capital structure
the acquisition provides. This deal provides greater stability to benefit customers and we will
continue to provide the same great service that customers have come to appreciate.
Will customers continue to use the same resources (e.g., support, customer care, SMART)
used today?
There will be no immediate changes and customers can continue to expect the same great
service that they have come to appreciate. We will continue to look for ways to improve the level
of service and support we offer to customers.
