ISLEWORTH, U.K. -- Vanco plc, the UK-based global Virtual Network Operator, emerged as successful bidder at the auction in Chicago of US networking company, Universal Access ("UA"). Vanco will be paying £10.1m ($18.7m) for the company and has agreed to settle UA's outstanding liabilities, up to a total of £1.9m ($3.5m).

Founded in 1997 and formerly listed on The Nasdaq Stock Market, UA provides network connectivity services to US and international telecoms carriers, integrators and government agencies. It has also developed its own sophisticated software for optimising operational efficiencies in the design and costing of network routes.

Based in Chicago, UA has a customer base of over 225 companies and around 70 employees. According to UA's management accounts the business currently generates revenues of $44m. At the height of the 'dotcom bubble', UA achieved a valuation of $6bn on Nasdaq.

In August last year, UA filed for protection under Chapter 11 of the US Bankruptcy Code after falling into financial difficulties. These related principally to its future property obligations and the adverse effects of certain financially troubled customers.

Vanco has been seeking to expand its presence in the US and the acquisition of UA is a key step forwards in Vanco's ambition to build a significant presence in this major market. UA transforms Vanco's existing US operations, which are also based in Chicago, tripling revenue and headcount, as well as significantly enhancing Vanco's network purchasing power. Vanco also sees exciting cross-selling opportunities of its own products, such as MPLS Matrix, to UA's existing customers, as well as reciprocal opportunities enabling it to sell UA's expertise, products and systems to its own global customer base.

Allen Timpany, Vanco's Chief Executive, commented,

"This acquisition signifies our clear intent to build an even bigger business in the US - a large and diverse market where our Virtual Network Operator model has been proven to be successful. On top of our excellent organic growth in the United States, typified by our largest-ever contract announcement earlier in the month, the opportunity to purchase a business with such an ideal fit could not be missed. We have paid a great price for an innovative and unique business. I believe this is a significant stepping stone in the continued strong growth of the Vanco business."

Vanco Group Ltd.