Reliance Communications buys US-based Yipes for $300 mn

Monday, 16 July 2007, 07:00 Hrs
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Mumbai: Reliance Communications' (RCOM) Flag Telecom Monday announced the acquisition of US-based Yipes for about $300 million in an all cash deal, chairman Anil Ambani said.

San Francisco-based Yipes Enterprise Services, Inc, is one of the leading providers of end-to-end Gigabit Ethernet solutions, with 22,000 route km of fibre across 14 metros in the US that covers 40 percent of the total datacom market.

Some of its leading global customers include Verizon and NTT.

"This is the largest acquisition that Reliance Communications has ever made. The acquisition of Yipes drives forward our strategy to offer the most sophisticated, cutting edge data communication products and services, specialising in application and content distribution, spanning developed and emerging markets," Ambani told a press conference here.

"This acquisition is going to accelerate Reliance Communications' penetration into the lucrative $100 billion global enterprise market," he said.

Ambani also said RCOM would be investing over 1 billion towards rolling out the services by Yipes in Asia, Africa, Middle-East and Europe by mid 2008.

"By synergising Flag and Yipes, Reliance is poised to become the global leader in Ethernet, a $25 billion market worldwide by 2010," Ambani added.

He further added that Flag Telecom would be investing over $1.5 million in the next couple of years to expand to Vietnam, Cambodia and Philippines.

"This acquisition of Yipes by India's powerhouse, Reliance Communication, sets the stage for a major transformation within global telecommunications," said John Scanlon, CEO of Yipes.

"With Reliance Communications we aim to replicate our success in the US across the rest of the world," Scanlon added.
Source: IANS
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