Breaking news: Reliance Communications has announced that they’ve acquired US based Yipes Enterprises Services in a Rs. 1200 crore ($300 million) all cash deal. With this acquisition, RCom will enter the enterprise and institutional data services market in the US. ADA group Chairman Anil Ambani said that Yipes is operational in 14 cities in the US, with over 22,000 route km of optic fibre. It has around 1000 enterprise customers, including Verizon and is cash positive with operating margins of 55 percent. Reliance plans to take the Yipes franchise global, in association with Reliance Communication owned FLAG Telecom.

Yipes had received funding from Norwest Venture Partners. Pramod Haque, Managing Partner at NVP is the Chairman of Yipes.

Anil Ambani also announced that FLAG telecom has turned profitable for the first time in its history. Reliance has invested Rs. 2000 crore crores in FLAG since its acquisition, and all investment has been done financed internally by cashflows generated from FLAG operations.

Update: The Yipes acquisition has been executed through FLAG Telecom. Pramod Haque remains the Chairman of Yipes ,so it doesn’t seem as if NVP has exited. Yipes provides end-to-end Ethernet solutions for enterprise customers, and since July 2002, it had received funding from NVP, JP Morgan Partners, the Sprout Group, Crosslink Capital and Silicon Valley Bank ($9 million).