rench telecommunications company France Telecom (NYSE: FTE) has bought out its two partners in the joint venture Global One for a total of US$3.88bn, the company reported yesterday. France Telecom acquired 100% control from US-based operator Sprint (NYSE: FON) and Germany's Deutsche Telekom (NYSE: DT).
France Telecom's strategic ambition in the global corporate solutions business is to become a key player in managed data networks and IP-based communication and hosting, and will use the synergies between Global One and its existing data subsidiary.
The acquisition of Global One also allows France Telecom to develop a leading voice and IP carrier wholesale business, leveraging its extensive network reach, marketing and sales activity, as well as creating significant operating synergies, the company reported.
Created in January 1996 as a joint-venture between France Telecom, Deutsche Telekom and Sprint, Global One is a leading corporate telecom service provider with revenues in 1999 of US$1.1bn.