India's Reliance snaps up ailing Vanco

Reliance Globalcom is to acquire London-based Vanco Group, which provides global managed network services to some 220 customers. They include AVIS, British Airways, Siemens, Virgin Megastores.

 

However, on 6th May, Vanco issued a shock profits warning, its shares were suspended and its chief executive and founder, Allen Timpany, resigned. Over the previous year, the company's shares had fallen by 80% as anxiety grew about the disparity between turnover and cash flow.

 

According to the Financial Times, Reliance Globalcom (a subsidiary of India's integrated telecom service provider Reliance Communications) will pay £40 million (€50.2 million) for Vanco and take on its liabilities. Vanco owes some £123 million (€154.34 million) to banks, who will be repaid about a third of the debt, while shareholders won't receive anything.


"The acquisition of  Vanco is in line with Reliance Globalcom's vision to create one of the Top 5 Global Datacommunications Enterprises in the world," said Anil Dhirubhai Ambani, Chairman, Reliance Communications. "The combination of Reliance Globalcom's extensive capabilities and VANCO's unique global experience would create a new breed of integrated services communications powerhouse," he added.
 
Allen Timpany famously established Vanco in 1988, having bought the name from a newspaper advert for £1.

 

Reliance Communications is also in talks to take over operator MTN - see today's story.

Suggested Articles

Wireless operators can provide 5G services with spectrum bands both above and below 6 GHz—but that doesn't mean that all countries will let them.

Here are the stories we’re tracking today.

The 5G Mobile Network Architecture research project will implement two 5G use cases in real-world test beds.