Tata Communications will acquire US-based enterprise messaging firm Kaleyra for about $100 million (nearly Rs. 820 crore) in an all-cash deal, the company said on Wednesday.
With operations in over 190 countries, Kaleyra provides integrated communication services with a set of proprietary platforms, offering targeted personalisation through messaging, video, push notifications, e-mail and voice-based services and chatbots.
“Tata Communications has agreed to acquire Kaleyra, Inc in a cash-only transaction, for a total consideration to Kaleyra shareholders of approximately $100 million and the assumption of all outstanding debt,” Tata Communications said in a statement.
With this transaction, Tata Communications will gain an industry-proven platform with strong capabilities and scale, the statement said.
“Upon closing of the transaction, expected in six to nine months, Kaleyra Inc will become a subsidiary of Tata Communications Limited,” the statement said.
Kaleyra claims to have a strong presence in the business communications market in banking and financial services, retail and digital commerce industries across global markets, in addition to a team with expertise in technology, engineering and research and development.
Tata Communications will also benefit from Tier 1 carrier connections in the US, ready connectors to third-party platforms, and video services without the need for additional software plug-ins, the statement said.
“We are excited about Kaleyra’s remarkable talent and their demonstrated capabilities in next-gen technologies. With this acquisition, we will further build intelligent, intuitive and innovative multi-channel communication solutions to unlock new growth opportunities for our customers,” Tata Communications MD and CEO AS Lakshminarayanan said.
The resulting business will leverage Tata Communications’ large base of enterprise customers worldwide, including 300 Fortune 500 companies, mobile network operator (MNO) connections and global expansion opportunities.
For the full year ended December 31, 2022, Kaleyra reported revenue of $339.2 million nearly Rs. 2,780 crore).
“When we launched Kaleyra 24 years ago with my co-founder Simone Fubini, I could hardly envision that our voyage would take us from a small Italian startup to global expansion, a publicly listed NYSE company, and now working together with a great technology leader like Tata Communications. This is a great day for Kaleyra and our shareholders and our employees worldwide,” Kaleyra founder and CEO Dario Calogero said.
