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RCom arm buys UK’s Vanco Group for $77 m

(The Hindu Business Line 27th May 2008)
Reliance Globalcom, a subsidiary of Reliance Communications (RCom), has acquired London-based managed network services provider, Vanco Group, for about $77 million (Rs 324 crore).
The acquisition of Vanco would add $365 million (Rs 1,550 crore) to the annual revenues of Reliance Globalcom through secure long-term contracts with large enterprise customers, RCom informed the stock exchanges in a statement issued on Monday.
Vanco is considered to be amongst the world’s top five managed global network players with over 220 multinational customers, according to research firm Gartner Inc. Vanco managed network services are available in over 40,000 locations across 163 countries with 90 per cent of its revenue from developed markets of the UK, the US, France and Germany.
The Vanco acquisition will increase Reliance Globalcom’s tally of enterprise customers to over 1,400, the company statement said.
“The combination of Reliance Globalcom’s extensive capabilities and Vanco’s unique global experience would create a new breed of integrated services communications powerhouse,” Mr Anil Ambani, Chairman, Reliance Communications, said.
The acquisition will also enable Reliance Globalcom to add nine more network management centres to its global service systems and leverage Vanco’s relationships with over 700 telecom carriers across the globe.
Reliance has been on the lookout for inorganic growth opportunities. Last month, the company acquired eWave World, a 4G operator focused on emerging markets across Asia, Latin America, Western Europe and Africa.

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