Mumbai, May 25: Anil Ambanis Reliance Communications (R-Com) is believed to be in advanced stages of negotiations to acquire London-based global virtual network operator Vanco.
According to sources close to the talks, the deal is likely to be inked within 24 hours.
While the final value of the deal is not known, the maximum market capitalisation of Vanco is $800 million.
The London firm has over 200 clients in the UK, France, Germany, the US and Singapore. The company has long-term contracts worth over $650 million that will materialise over the next three to five years.
Vanco is listed on the London Stock Exchange, and R-Com will look to acquire 100 per cent equity of the global network operator.
Vancos operations are spread over 230 countries, which will give R-Coms geographic reach a significant boost.
Earlier, R-Com had acquired the US-based Yipes, an ethernet service provider.
The company is rolling out proprietary Yipes services in over 40 countries.
Besides, it is doubling the coverage of Yipes in the US from 14 cities. Yipes has since been renamed Reliance Globalcom Services Inc.
In April end, R-Com had acquired eWave World, a WiMax operator focused on Asia, Latin America, western Europe and Africa.
The latest acquisition will bring under R-Coms fold 800 products that Vanco has developed in the last 20 years.
Officials said the acquisition was in line with R-Coms goal of being among the top five data communication players in the world.
R-Com is building a 50,000 km undersea cable network which will expand its network to 70 countries.
This will boost the wholesale capacity business of the company. It is also building multiple product lines to address the enterprise and corporate markets through the cable network.
As in the case of the earlier acquisitions of Flag Telecom, Yipes and eWave World, R-Com is expected to retain the workforce, including the top management of Vanco.
An R-Com spokesperson refused to comment on the development.