Mumbai: VSNL, the international long distance telecom arm of the Tata Group, has completed the acquisition of international telecom services provided Teleglobe. VSNL paid a total of $239 million for the acquisition, including assumption of net debt of Teleglobe.

The acquisition was made by VSNL International, the overseas arm of the company. Subsequent to the acquisition by VSNL, Teleglobe has been de-listed from the NASDAQ exchange. VSNL's ADR's are listed on the New York stock exchange.

The combined overseas operations of VSNL will operate under the name of VSNL International and will provide the wholesale and enterprise sectors with mobile, data and voice offerings. Teleglobe will continue to serve as the product brand for the voice, mobile and IP transit wholesale services. VSNL International will remain the product brand for the company's wholesale IPL and ethernet offerings, as well as the full enterprise portfolio.

The combined company will own and operate one of the world's largest international mobile, data, and voice networks with coverage to more than 240 countries and territories, supporting more than 1,400 customers. The company would own a total terrestrial network fibre and sub-sea cable network of 206,356 km, making it one of the key players in the international wholesale market.

The acquisition will enable VSNL International to emerge as the world's largest international wholesale carrier with more than 415 combined direct and bilateral relationships with leading international voice telecommunications providers. The company would carry more than 17 billion minutes annually of international wholesale voice traffic and would connect over 400 mobile operators worldwide.

VSNL would also become the largest provider of signalling conversion services to enable GSM roaming to and from North America.

The company said the acquisition would result in an increase of nearly 200 per cent in total revenues for the financial year 2006-07. VSNL had reported total revenues of Rs3,410.4 crore for the year 2004-05.

The company reported a net profit of Rs150.1 crore or Rs5.27 per share on total revenues of Rs1,075.5 crore for the December quarter as compared to Rs91 crore or Rs3.19 per share on revenues of Rs961.2 crore for the previous quarter ended September 2005.

VSNL is trading at Rs398.65 (up 2.45 per cent) on the NSE at 11.10 AM today.