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DECEMBER 20, 2007 -- Reliance Communications Ltd. (search for Reliance Communications) received approval from the Federal Communications Commission (FCC) for the merger of U.S.-based Yipes Holdings, Inc. (search for Yipes). Reliance Communications announced the $300 million acquisition of Yipes in July 2007. The transaction, closed on December 19, 2007.
The combination of Yipes' enterprise Ethernet services; the private undersea cable system of FLAG Telecom, a subsidiary of Reliance Communications; and Reliance's commitment to expansion and growth will enable the creation of a global service-delivery platform with unmatched coverage and capability, Reliance believes. Yipes' customers will enjoy broader coverage, access to more international markets, and the rollout of new innovative services, the carrier added.
Punit Garg, president, global business, Reliance Communications and CEO, FLAG Telecom said, "FCC approval is an important step for Reliance to accelerate its plans to expand Yipes' coverage in the U.S. domestic market. This step also paves the way to extend Yipes' services worldwide over FLAG's global next-generation network, creating significantly more value from our undersea network assets in the strongholds of India, the Middle East, and East Asia."
With the acquisition of Yipes, Reliance will accelerate its penetration into the $100 billion global enterprise and institutional data services market and will be better able to serve its international customers directly in the U.S.
"Yipes has always been a leader in providing innovative technology and first-class services to its customers. Our acquisition by Reliance will enable us to extend our technology to enterprise customers around the world while maintaining our customer service commitments," said John Scanlon, CEO of Yipes. "Our rapid global expansion will allow us to secure a larger share of the business Ethernet services market, the fastest growing segment of the data services market, which is projected to climb to $30.7 billion by 2012."
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