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Reliance Communication (RCOM) has acquired a 100% stake in US based Onyx NewCo through its subsidiary company Reliance Globalcom Services, RCOM informed BSE yesterday. Onyx was bought from US based GTT Communications, an MNC dealing in cloud networking, private leased line, and VoIP solutions for enterprises with offices in Europe, and Honk Kong, and working with Healthcare, telecom, banks and government sector undertakings. There isn’t much information on Onyx NewCo LLC, which has only recently been incorporated (October 25th 2016), as a company which provides communication services to enterprises, and deals with ethernet hardware business, but is yet to commence operations. It’s likely that a part of GTT’s business has been hived off into the new company, which is being acquired by Reliance Globalcom.

Note that Reliance Globalcom rebranded as Global Cloud Exchange in 2014 and moved its headquarters from India to New York in the same year. In 2013, the company was reportedly looking to sell 80% stake to a consortium led by Bahrain Telecommunication Company (Batelco) for around Rs 6,000 crore, but later called of the deal. Subsequently in 2014, the company’s CEO Bill Barney told Reuters that “Reliance Globalcom is no longer for sale”

Reliance Globalcom is currently a global managed network and communication service provider for ISPs and multinational enterprises. It currently claims to serve several enterprises and carriers in more than 160 countries. It also claims to manage undersea and land fiber cable system of 200,000 kms across India.

Other deals from RCOM

In India, RCOM has successfully completed two different consolidations:
i) A merger deal with Sistema Shyam owned MTS brand for a reported value of $690 million. RCOM would also acquire 9 million customers of MTS and its 800 MHz spectrum.
ii) RCOM’s wireless business merger deal with Aircel was completed in September for a reported value of $5.2 billion, which is considered as one of the biggest consolidation in the Indian telecom industry.

RCOM also entered into a spectrum sharing deal with its rival company Reliance Jio, owned by Mukesh Ambani.  They had entered into a strategic partnership in January to share spectrum in 800 MHz band across 17 Circles. Both companies had virtually merged their networks as per statements issued by Anil Amban to the press.

Financials

RCOM reported a total customer base of 88.3 million for Q2FY17, down from 111.5 million in the same quarter last year. Net profit for the quarter was Rs 38.8 crore, down 28.4% quarter-on-quarter. Overall revenue stood at Rs 5141.8 crore for this quarter, down 4% year-on-year.