CITIC Telecom International CPC Limited recently announced its acquisition of the telecommunication business of Linx Telecommunications B.V. (Linx Telecommunications).
The acquisition includes Linx's 470 kilometer optic fiber network in the Baltic Sea, its network operations centers (NOCs) in Moscow and Tallinn, Estonia, as well as Linx's data centre in Tallinn, which serves as Estonia's largest Internet Exchange (TLL-IX).
Currently undergoing customary regulatory approval, the acquisition is expected to complete in the second half of 2016.
According to CITIC Telecom CPC, the move aims to extend its global footprint to Central Asia and Eastern Europe markets, as well as greatly enhancing its ability to capture opportunities arising from China's "One Belt, One Road" economic cooperation initiative.
The "One Belt, One Road" initiative aims to foster growth and closer cooperation in trade links, capital flows, infrastructural investment and policy coordination in Asia, Europe, and Africa.
It is expected that investment by China under the initiative will double within the next three years, reaching a total of US$200 billion.
Xin Yue Jiang, Chairman of CITIC Telecom International Holdings Limited said: "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."
"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," he added.
The network services provided by Linx cover a high-growth potential market which includes Russia, Kazakhstan and the "Stan" region, the Baltic Sea and Eastern Europe.
Since both companies have a similar customer base, the acquired assets will enable CITIC Telecom CPC to readily strengthen its development and strategy for markets in Central Asia and Eastern Europe.
This acquisition will also further reinforce CITIC Telecom CPC's capabilities in managed networking services, cloud computing and other managed value-added data services.
Moreover, Russian language proficiency among Linx Telecommunications team members joining CITIC Telecom CPC, as part of the acquisition, will bring added competence in expanding business in the region.
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