France Telecom acquires GTL IT biz

MUMBAI, INDIA: Telecom infrastructure major GTL has hived off its IT enterprise and management business unit to France Telecom's subsidiary, Orange Business Services. However, the size of the deal was kept under wraps, with neither of the companies not disclosing it.

The Indian company is now planning to hive off its second IT unit, comprising application management, BPO and KPO processes valued at around Rs 250 crore. It has already initiated discussions with global majors.

"The hiving of the unit is under our efforts to exit all non telecom business and focus on network services for telecom carriers. In enterprise and management services space, we were also competing with our own clients, which we wanted to avoid," GTL chairman and managing director Manoj Tirodkar said.

The company was offering enterprise solutions and managed services to medium and large corporates. It had over 450 customers, including blue chip companies, and was employing 590 employees.

The company had posted revenues of around Rs 140 crore in the financial year ended March 2007, and according to analysts tracking the company, the deal is believed to have struck at around Rs 180-200 crore. However, the company was tight-lipped on this.

According to Orange Business Services CEO Barbara Dalibard, "India is a key growth market for our customers. This acquisition broadens our ability to deliver best-in-class enterprise services and solutions for our customers throughout the region, including customers in India."

She further added: "This investment significantly strengthens our presence in network related services and in the Asia-Pacific region, two major areas of growth in Orange Business Services strategy to be a leading global communication provider."

The deal would also enable GTL to work closely with France Telecom in African countries like Nigeria and Senegal, where the duo is planning to rollout network services. The companies would jointly roll out network operations and setting up infrastructure for telecom operators in these countries.