Orange Business Services acquires GTL's IT services Business

GTL Ltd has announced that the Board of Directors of the Company at its meeting held July 11, 2007, has ratified and approved the agreement entered between the Company and EGN B. V (France Telecom) for the sale of Enterprise Solutions (ES) and Managed Services (MS) business categorized under the IT Enabled Services Business.

Orange Business Services, the business communications arm of France Telecom has entered into an agreement with the Company, the leading Network Services from India, for acquiring the Enterprise Network Services and Managed Services business of the Company in an all cash deal.

The Acquisition of the Company's IT services would provide Orange Business Services with a blue chip customer base, dedicated sales force, skilled professionals and relationships with leading technology providers to address enterprise networks space in India. Standard Chartered played the role of advisor for the Company, and BMR Advisors, was the advisor and due diligence partner for France Telecom.

Commenting on the agreement Mr. Manoj Tirodkar, CMD of the Company, said, "Our enterprise business has the finest customer base, most dedicated and performance oriented work force. We have built world class Enterprise and Managed Services business and the fact that Orange Business Services, a leading global brand owned by France Telecom is acquiring the business speaks for the quality of assets we have built. The hiving of the enterprise business is part of our efforts to focus n Network Services for Telecom carriers. We are happy to find a partner in Orange Business Services, who will add value to the business and would take care of our employees as well".

The Company as part of its IT services business offers, Enterprise Solutions and Managed Services to medium and large Corporates. It has over 450 customers, comprising of blue chip Companies, with major presence in the BFSI and ITES segments. Some of clients are Citibank, Standard Chartered, Deloitte, WNS, First Source etc. The Company also has relationships with leading technology providers such as Alcatel - Lucent, Nortel, Juniper, Patchlink, Arc Sight and Verint in the Enterprise space. The Company is one of the oldest partners for Nortel, and has a leadership position in the Contact Center space. The business serves the customers from 13 locations in India and internationally in countries like US, UK, Singapore, and Sri Lanka.

The acquisition would help Orange Business Services further grow its business in India, and facilitate the delivery of Network Management Services to its global customer base. The acquisition will also help Orange Business Services to reinforce its local presence and to serve better European, American and Asian multinationals who need network related services in India and in the region.

The Enterprise and Managed services business has revenue of over Rs 140 Cr (as on March 31, 2007) and has over 590 employees. The employees consist of more than 200 engineers, trained in various skill sets of converged solutions, data technologies and Infrastructure management. The Company's Managed Services is BS 15000 and ISO 27001 certified, which are the highest certifications for information security. The division also was judged by Nortel as the best partner for 2005 and had won several other awards as well.

The hive of the IT Services business is part of the ongoing restructuring program, through which the Company wants to focus solely on Network Services, and Intends to add capabilities across the entire spectrum of the Network Life Cycle of Telecom Operators and Technology Providers (OEM's).

Source : Equity Bulls

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