PARIS-Equant and France Telecom’s Global One announced they will merge, forming a company with about 3,700 large business customers and pro forma annualized revenues of up to $3 billion.
The complicated merger includes a number of transactions: Equant will acquire Global One’s data business; France Telecom will acquire SITA Foundation’s interest in Equant; Equant/Global One will gain full control over the SITA-Equant network; and France Telecom will invest a hefty $1 billion in the new company.
The deal will give France Telecom a 54-percent stake in Equant.
Company executives said the merger will give Equant/Global One a healthy combined customer base, an expanded global infrastructure and the worldwide resources of France Telecom.
“These agreements provide Equant with additional scale, network control and significant financial resources,” said Didier Delepine, Equant’s president and chief executive officer. “With these developments and the benefits of access to the strengths of France Telecom, we can accelerate our growth strategy and further position ourselves as a pre-eminent provider of data network solutions.”
Delepine will be the chief executive officer and chairman of the management board of Equant/Global One. Daniel Caclin, Global One’s chief executive officer, will become the new company’s chief operating officer, and Equant’s Chief Financial Officer John Allkins will remain at his post in the new company.
