Mumbai: Reliance Communications Ltd., the second-biggest mobile services provider of the country, said on 16 July it was acquiring US-based Yipes Enterprise Services Inc. for $300 million.
Yipes, a provider of managed ethernet and application delivery services, offered Reliance an opportunity to tap a fast-growing market, Chairman Anil Ambani told a news conference.
“Yipes will accelerate Reliance’s entry into the $90 billion global market for enterprise and institutional data services,” he said after announcing the all-cash deal.
The ethernet market alone was valued at $10 billion, Ambani said, addding it was forecast to grow at a compounded annual rate of about 30% to more than $25 billion by 2010.
Reliance Communications, which competes with top mobile firm Bharti Airtel and Vodafone -controlled Hutchison Essar in the world’s fastest growing mobile market, has more than 35 million subscribers, including fixed-line and Internet.
Reliance Communications acquired Flag Telecom, which owns an undersea cable system, a few years ago, and has said it would continue to evaluate options for inorganic growth.
Shares in Reliance Communications hit a record high of Rs572.70 at 0746 GMT, the shares were up 2.2% at Rs567 in a Mumbai market up 0.11%.