CITIC Telecom has announced its acquisition of the telecoms business of Linx Telecommunications, signifying a further global expansion of the Chinese parented group.
The acquisition by the Hong Kong-based CITIC Telecom of the Amsterdam headquartered Linx includes a 470 kilometre optic fibre network in the Baltic Sea, network operations centers in Moscow and Tallinn and Linx’s data centre in Tallinn, Estonia's largest Internet Exchange. The deal is currently undergoing customary regulatory approval and expected to complete in the second half of 2016.
CITIC Telecom said the purchase served to expand its global footprint to Central Asia and Eastern Europe markets, further strengthening the company's global reach. It already has operations in Asia-Pacific, North America and Western Europe.
“Our mission is 'Connecting The World with Quality Service' and the acquisition of these important telecommunications assets is significant to our development strategy of expanding business internationally and increasing global network coverage, keeping Mainland China as the foundation of our business, with Hong Kong and Macau serving as both base and springboard to more opportunities,” Xin Yue Jiang, chairman of CITIC Telecom, said.
“We are leveraging Linx's extensive network resources and experience in Central Asia, Central and Eastern Europe to significantly boost our access to, and capability to handle, opportunities from the "One Belt, One Road" initiative, in addition to addressing and better serving our customers' business needs in these regions.”
Linx Telecommunications had been investing heavily in constructing extensive networks and providing a variety of bandwidth services, including a 470 kilometre submarine fiber network covering the countries surrounding the Baltic Sea which connects Sweden, Finland and Estonia.
The majority of the cable’s customers are major companies which require data services, such as Ethernet circuits, bandwidth services, MPLS virtual private networks, data centres and cloud computing.
“The acquisition of Linx Telecommunications will enable CITIC Telecom CPC to expand our reach to markets covered by the 'One Belt, One Road' Initiative. By extending our footprint to Russian-speaking markets and Central Asia, we will enhance network access for our existing customers and facilitate greater business growth across Asia and Europe,” said Mr. Stephen Ho, CEO of CITIC Telecom CPC.
“With this new competitive advantage, we will continue to support the 'One Belt, One Road' Initiative through ongoing investment and development of telecommunications infrastructure and premium ICT services. I am confident this acquisition will bring new business opportunities, enhance overall efficiencies and elevate our growth to greater heights.”
