Reliance Communications acquires Yipes Holdings of US for $300 million
17 Dec 2007
Mumbai: Anil Dhirubhai Ambani Group company Reliance Communications has completed the acquisition of Yipes Holdings of the US for around $300 million (Rs1,200 crore).
The acquisition, announced in July this year, would give Reliance Communications access to a $10 billion global enterprise data market, the company said in a statement.
The transaction has received all necessary approvals from the US Federal Communications Commission (FCC), the statement added.
Yipes has strategic network presence in the top 14 US metros, which account for 40 per cent of the total US datacom market and also has nearly 1,000 enterprise customers.
RCom plans to expand Yipes presence to 40 new markets globally, including the Middle East, Asia and India. By synergising Flag and Yipes, Reliance is poised to become the global leader in ethernet market, which is expected to reach $25 billion by 2010, Rcom said.
Reliance Communications (formerly Reliance Infocomm), along with Reliance Telecom and Flag Telecom, is part of Reliance Communications Ventures. Anil Ambani controls 66.75 per cent of the company, which accounts for more than 1.36 billion shares of the company. The Anil Dhirubhai Ambani Group is into power, financial services and telecom initiatives of the Reliance ADA Group.
The group recently received spectrum for GSM operations in 16 additional circles besides the eight where it already operates.
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