Interoute, Tecom Partner
NEW YORK -- Interoute, owner and operator of one of
the most densely connected voice and data network, today announces that it has
secured a new strategic partner, Tecom, a United Arab Emirates telecoms
operator and member of Dubai Holding.
Under the terms of the agreement, Dubai Holding (Tecom) has taken a stake in Interoute, in exchange for an equity investment in excess of 120 euro ($145,668,000 US). The cash infusion will help Interoute drive its two-pronged strategy of eastward expansion into under-served wholesale markets of Southern and Eastern European, Middle East and North Africa, as well as spur continued growth in the corporate customer base serviced by Interoute's Next Generation Network.
This strategic investment forms part of Tecom's plans of international expansion in the telecoms sector. Tecom has already played a key role in the development of Dubai as a commercial hub for the Middle East and as a pivotal link between Europe and the Far East. By developing strategic relationships with different telecom operators across Europe and the Middle East, Tecom aims to benefit both regions by further enhancing the infrastructure that links them together.
The Tecom investment coincides with Interoute's acquisition last week of Via Networks and the PSINet Europe assets. The combined entity serves 19,000 corporate customers, every incumbent operator in Europe, as well as the largest North American and Asian carriers.
Commenting on the investment, James Kinsella, Interoute's executive chairman said: "I am honored by the vote of confidence Tecom has demonstrated with this investment, and I believe Dubai's extraordinary vision of its own future is an inspiration for the future of global telecoms."
Interoute has grown revenues by more than 100% each year since it restructured in 2003. Over its owned and operated Next Generation Network, Interoute offers a range of leading-edge telecoms products such as Arena, Europe's most successful VOIP-trading platform, and an advanced hosting platform.
Interoute Telecommunications Ltd.