Broadband Internet provider Covad Communications is strengthening its commitment to offering phone calls over the Internet -- known as voice over IP -- with an acquisition.
The San Jose, Calif.-based company Wednesday said its will purchase privately owned GoBeam for $48 million in stock. Pending regulatory approval, the deal should be completed in May of this year. In a statement, Covad warned that the accelerated roll out of its VoIP services would have an impact that has yet to be evaluated on the company’s cash flow. Pleasanton, Calif.-based GoBeam has some 13,000 VoIP units currently installed with customers across California and Chicago.
Read more at Internet News.
