Reliance Communications acquires UK network operator Vanco for $77 million

26 May 2008

Mumbai: Reliance Communications Ltd has acquired UK-based virtual network operator Vanco for $76.9 million. Reliance Communications, India's No.2 mobile phone operator, made the acquisition through its overseas arm Reliance Globalcom.

The acquisition of Vanco would add $365 million to Reliance Communications' annual revenue, the Anil Dhirubhai Ambani Group company said in a filing with the Bombay Stock Exchange.

Reliance Communications, which is also in buy-out talks with South Africa's MTN Group, said it may assume Vanco's  £123-million pound debt.

Shares of Vanco, which had a market cap of $800 million at its peak, was to suspended from trading after it gave a major profit warning and parted ways with its founder chairman Allen Timpany.

Vanco has more than $750 million worth of long-term contracts from its customers, that include AVIS, British Airways, Siemens and Virgin Megastores.

Vanco's customer base could boost the number of Reliance Globalcom's enterprise customers to over 1,400.