Reliance Comm buys Yipes for $300 mn

Posted on | July 17, 2007 |

India’s second largest mobile operator Reliance Communications has acquired US-based Yipes Holdings, in an all-cash deal valued at Rs 1,200 crore ($300 million).

Yipes provides managed ethernet and application delivery services for enterprises and has nearly 1,000 customers. Yipes will be a wholly-owned subsidiary of Flag Telecom, the undersea cable arm of Reliance Comm.

Founded in 1999 by a group of investors, including Norwest Venture Partners managing partner Promod Haque, Yipes has annual revenues of $100 million and has network presence in the top 14 US metros, which account for 40% of the total US data communications market.

The acquisition of Yipes will help RCOM overlay latest technology over Flag network. RCOM will expand Yipes coverage within the US and take Yipes to nearly 40 new markets globally, including Middle East, Asia and India, by connecting it to Flag and RCOM network, said Mr Garg.

Mr Garg said corporate clients, MNCs and small and medium enterprises presented good business opportunities for Yipes in India. “BPOs and ITeS companies will benefit and we hope to take a significant market share,

Category: Reliance

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