July 01, 2005
VSNL completes acquisition of Tyco Global Network
Videsh Sanchar Nigam Limited, VSNL (NYSE:VSL), India's leading provider of international telecommunications and internet services, today announced that it has completed the acquisition of the Tyco Global Network (TGN), a state-of-the-art undersea cable network that spans 60,000 kms (37,280 miles) and the continents of North America, Europe and Asia. With the acquisition of TGN, VSNL is now one of the world's largest providers of submarine cable bandwidth. VSNL acquired the network for $130 million (not including the assumption of certain liabilities).
"This acquisition is another positive step in our ongoing drive to offer global connectivity and efficient communications solutions for our customers," said N Srinath, head of operations of VSNL. "Today's agreement confirms our position as a leading global service provider. It also positions the Tata group as a leading entity that can provide seamless telecommunications and IT services under a single umbrella for global enterprises."
VSNL is part of the $17 billion Tata group, which last year listed Tata Consultancy Services (TCS) on the Bombay Stock Exchange. TCS is Asia's largest software service provider and system integrator.
Ongoing management responsibility of TGN will be assigned to VSNL International, the division leading VSNL's expansion into key global markets. VSNL International is rapidly growing its global footprint, with offices currently in Virginia, New Jersey, London, Paris, Madrid, Amsterdam, Frankfurt, Singapore and Tokyo.
"Our multinational clients require seamless connectivity around the globe and customised network architecture," said Vinod Kumar, president, VSNL International. "The combination of the TGN assets and the deep network penetration of VSNL throughout India will allow VSNL to design customised and scalable connectivity solutions between all the key global business centers, through a single point of contact."
The agreement culminates a nearly eight-month process that included approval from regulatory bodies in the United States and other countries.