Anil Ambani Group firm Flag Telecom on Monday announced the acquisition of US-based Ethernet services provider Yipes Communications for 300 million dollars (Rs 1,200 crore) in cash - a deal that would scale up its optic fibre network and give it a footprint in the American market. "Yipes has 22,000 km of optic fibre network... has operating margin of 55 per cent and is cash positive," Reliance Communications [Get Quote] chairman Anil Ambani said. He said Reliance Communications, which owns Flag, will spend Rs 1,000 crore (Rs 10 billion) to roll out Yipes' services in Asia, Africa Middle-East and Europe in the next one year.
Yipes existing customers include Verizon and NTT. RCOM also sees a four to five per cent increase in revenues of Yipes over the next 4-5 years. Ambani said Pramod Haque, managing partner of Norwest Venture Partners would be joining the company.
Flag Telecom is a leading provider of international network transport and data services to telecom operators and content providers and Internet communities across the globe.
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