San Jose CA) - Platinum Equity announced that it will be purchasing Covad for $1.02 per share, which represents a 59% premium over the closing price of the firm’s shares on Friday, October 26. Platinum Equity will be paying roughly $304 million in cash for the company, which offered the first commercially available DSL service in the U.S. back in 1997.

Covad today is available in 235 cities across the U.S. and claims to be the largest wireless broadband service provider to businesses in California. The company also has about 52,000 VoIP seats in service, according to the firm’s website.

The company has been posting substantial losses on flat revenues this year. For the second quarter 2007, the company reported an $11.6 million loss on $120.6 million of revenues. As of August 2, 2007, the company had cash reserves and short term investments of $53.3 million available. Q3 earnings are scheduled to be released on October 30.

“After a careful and extensive review of our strategic alternatives, our Board of Directors has determined that the substantial premium to the current market price provided by this transaction offers the best value for our stockholders,” said Charles Hoffman, Covad president and chief executive officer, in a prepared statement.

The transaction is expected to close by the end of the second quarter of 2008.