Stricken virtual network operator Vanco has been snapped up for $76.9m by Indian telecoms firm Reliance Globalcom.

Vanco suspended its shares from the London stock exchange in early May as it announced it was reviewing recent profit figures and was in talks with bankers about its financial position (CRN, 12 May). It also announced that chief executive, Allen Timpany - who reportedly bought the firm for £1 in 1988 - had stepped down.

BT, IBM, Accenture and Cable & Wireless were just some of the names linked with a possible buyout after Vanco said it would examine “all available strategic options” during its period of suspension.

Reliance said the purchase would add £185m to its annual sales through secure long-term contracts with large enterprises. Vanco’s clients include Avis Europe, British Airways, Siemens and Zavvi, boosting Reliance’s tally of enterprise customers to over 1,400.

Anil Dhirubhai Ambani, chairman of Reliance Communications, said: “The acquisition of Vanco is in line with Reliance Globalcom's vision to create one of the Top 5 global data communications enterprises in the world.

"The combination of Reliance Globalcom's extensive capabilities and Vanco's unique global experience will create a new breed of integrated services communications powerhouse.”