AT&T closes NorthPoint acquisition

AT&T has completed its $135 million acquisition of substantially all the assets of bankrupt U.S. DSL (Digital Subscriber Line) provider NorthPoint Communications.

The acquisition first announced in March includes all of NorthPoint's co-location centers in the U.S., certain network equipment, systems and support software and related assets, such as two leased buildings in Emeryville, California.

AT&T has expressed its intent to enter the DSL market and, although NorthPoint's clients were businesses, AT&T plans to use the company's assets for the consumer market, the company said in March. The telecoms giant hopes to offer its own branded DSL services by the end of 2001. It is already heavily in the broadband market with its AT&T Broadband division that offers cable modem and other services.

NorthPoint sought Chapter 11 bankruptcy protection in January after a planned takeover by Verizon Communications fizzled out, leaving NorthPoint with inadequate funds to continue operating. Verizon dropped out of the deal, citing NorthPoint's declining business and financial conditions.

NorthPoint sued Verizon, alleging that it violated terms of the takeover agreement. The suit is still pending.

The IDG News Service is a Network World affiliate.