UK-based virtual network operator Vanco, a finalist in last year’s Tuanz Innovation Awards, has been sold to Indian telecommunications carrier Reliance.
Vanco entered its MPLS Matrix product in the awards last year, and while making the finals, didn’t win.
The company, which has a strong presence in the Asia-Pacific region, has recently faced financial difficulties. According to the The Times, Vanco had “run out of cash” by the beginning of this month.
The Times quoted a restructuring specialist who worked on the sale as saying Vanco had been sold for “less than the face value due to secure creditors”. Reliance picked up the ailing operator for US$77 million (NZ$98 million).
Former Vanco Asia-Pacific CEO Diarmid Massey visited New Zealand in October to attend the Tuanz awards. Vanco’s presence in New Zealand includes several New Zealand sites in an Australia/NZ/Papua New Guinea-wide private network it built for supply chain firm Agility.
Vanco doesn’t own network infrastructure itself; its business model is based on renting bandwidth from conventional carriers and providing clients with private networks that incorporate capability from a mix of different providers.