Vanco Group Limited acquired by India’s Reliance Globalcom

• Enhances Reliance Globalcom's annual revenues by £185 million (Rs. 1,550 crores)
• Adds over 220 MNCs to Reliance Globalcom customer base
• Reliance Globalcom Managed Network footprint expands to 163-plus countries
• Vanco's peak Market Capitalisation was around £380 million (Rs. 3,000 crores)

London/Mumbai, May 26th 2008: Reliance Globalcom Limited, subsidiary of India's largest integrated telecom Service provider Reliance Communications, today announced signing of an agreement to acquire the London-headquartered pioneering global Managed Network Services, Vanco Group Limited through one of its wholly-owned subsidiaries. The acquisition of Vanco adds £185 Million (Rs. 1,550 crore) to the annual revenue of Reliance Globalcom through secure long-term contracts with large enterprise customers.

"The acquisition of Vanco is in line with Reliance Globalcom's vision to create one of the Top 5 Global Data Communications Enterprises in the world", said Mr. Anil Dhirubhai Ambani, Chairman, Reliance Communications. "The combination of Reliance Globalcom's extensive capabilities and Vanco's unique global experience will create a new breed of integrated services communications powerhouse," he added.

Vanco’s blue chip customer base includes Avis Europe, British Airways, Siemens and Zavvi, increasing the Reliance Globalcom's tally of enterprise customers to over 1,400. Vanco has deployed Managed Network Services in over 40,000 locations across 163 countries, including the UK, US, France and Germany.

Vanco's peak market capitalisation was over £380 Million (Rs. 3,000 crore). Under the acquisition agreement, Reliance Globalcom will pay $76.9 Mn (Rs.327 Crores) to acquire 100% of Vanco's equity free of debt.

Reliance Globalcom, through this acquisition, adds nine Network Management Centres to its integrated and innovative global service systems and processes. Reliance Globalcom gains a significant advantage through Vanco's relationships with over 700 global, regional and domestic carriers, making it capable of offering services in 230 countries. Vanco’s highly experienced sales and channel organisation structure will further enhance Reliance Globalcom’s customer delivery capabilities in important geographies like US, UK, France, Germany, Benelux, Singapore and Australia.

Punit Garg, President & CEO, Reliance Globalcom said "Vanco’s strong management team led by Mark Thompson and Wayne Churchill will effectively enhance the expertise and depth of enterprise customer management at Reliance Globalcom. This will help the technology groups in the company to leverage resources beyond strategic business boundaries."

Reliance recently acquired eWave World, a 4G operator focused on emerging markets across Asia, Latin America, Western Europe and Africa. Last year, Reliance Globalcom had acquired a world leading US-based Ethernet Service provider, Yipes Holding Inc. for $300 Million (Rs. 1200 cr). The company is investing $500 Million (Rs. 2000 crore) and $200 Million (Rs. 800 crore) in 4G and Global Ethernet services respectively to expand its presence in over 50 countries. Reliance Globalcom is also investing $1.5 Billion (Rs. 6000 cr) in its fully IP enabled undersea cable network expansion programme that would address the global connectivity needs of over 90% of the world’s population across 60 countries in six continents.