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Reliance Takes Over U.S. Ethernet Company|
- By CXOtoday Staff, Jul 17, 2007 1239 hrs IST
- Tags : Reliance Takes Over U.S. Ethernet Company
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Reliance Communications revealed that it has acquired Yipes Holdings - a provider of managed ethernet and application delivery services - based in San Francisco.
Anil Ambani, chairman of Reliance Communication said "Yipes will accelerate Reliance Communications' penetration into the US $100 billion global enterprises data market."
The acquisition took place through a group of investors that included JPMorgan and the venture capital firms Norwest Venture Partners, Sprout Group and Crosslink Capital.
According to Ambani, by 2010 the ethernet market is expected to expand at a compound annual rate of 30% to more than US $25 billion.
This deal will enable Reliance to double Yipes' reach in metro cities in the US. It will take Yipes' franchisee model into 20 new geographies, particularly India, the Middle- East, and Asia by 2009. The deal values for US $300 million. Reliance Communication made the acquisition through its wholly owned subsidiary - Flag Telecom, which it bought in 2003 for about US $209 million.
According to a recent survey, Indian mergers involving companies in countries outside India stand at US $15.1 billion involving 99 deals, excluding the Yipes deal. That compares with US $5.8 billion from 85 deals in the same period last year, and US $21.7 billion from 167 deals in all of 2006.
This year's deals include Hindalco Industries purchasing Novelis of Canada in February, and several purchases by drug makers like Ranbaxy Laboratories and Dr. Reddy's Laboratories.
Tata Steel's acquisition of the Corus group for US $12 billion is counted in the 2006 figures because it was announced in October 2006, although the deal wasn't completed until 2007.
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