New Delhi: Anil Ambani group company Reliance Communications today said it has completed the acquisition of US-based Yipes Holdings in an deal valued at around Rs 1,200 crore.
The acquisition, which was announced in July, would give the company access to a Rs4,00,000-crore global enterprise data market and is well ahead of schedule, RCom said in a statement.
RCom has received the Federal Communications Commission’s (FCC) approval for the merger of Yipes and it anticipates a seamless expansion of Yipes into its service portfolio, the company added.
“RCom is planning a major play in the Global Ethernet estimated to grow to Rs 1,20,000 crore market worldwide by 2012 by leveraging FLAG network and Yipes products,” it said.
Punit Garg, president, Global Business, RCom & CEO FLAG Telecom said: “FCC approval is an important step for Reliance to accelerate its plans to expand Yipes’ coverage in the US domestic market.”
FCC is an independent US government agency charged with regulating interstate and international communications by radio, television, wire, satellite and cable.
Yipes has strategic network presence in the top 14 US metros, which account for 40% of the total US datacom market and also has nearly 1,000 enterprise customers.
The company would expand Yipes presence to 40 new markets globally including Middle East, Asia and India. Also, by synergising Flag and Yipes, Reliance is poised to become the global leader in Ethernet, which is expected to reach Rs1,00,000 crore market by 2010, it said.