VSNL to acquire Tyco Global for $130 million

02 November 2004

Mumbai: VSNL yesterday announced its intention to acquire Tyco Global Network from Tyco International for $130 million in an all-cash deal. The acquisition is subject to approvals from authorities in India, the US, and other countries where Tyco Global has operates.

According to Kishore Chaukar, managing director, Tata Industries, "It (the formalities) will be completed within six to none months from now."

The company will create a special purpose vehicle for the acquisition, he added.

VSNL will now control over 60,000 km of fibre; a network operating centre, 30 points of presence globally, and 12 gateways.

"The Tata group has a large presence in IT through TCS and other companies. If we can marry IT with bandwidth capacity across the globe, we would probably have an unbeatable combination," said Chaukar.

India is also a large IT and BPO centre requiring more global data services as it grows, said VSNL officials.