Tata Communications to acquire CPaaS platform Kaleyra for around $100 mn

Tata Communications on Thursday informed that it has entered into a 'definitive agreement' to acquire US-listed global communication platform Kaleyra. Kaleyra is an omnichannel integrated communication services provider with a set of proprietary platforms, offering targeted personalisation through messaging, video, push notifications, e-mail, voice-based services, and chatbots.

Under the agreement, Tata Communications has agreed to acquire the US-listed firm in a cash-only transaction at a price per share of $7.25 for a total consideration to Kaleyra shareholders of approximately $100 million and the assumption of all outstanding debt, the Mumbai-headquartered firm said.

"This transaction has been unanimously approved by the Boards of Directors of both Tata Communications and Kaleyra," Tata Communications said, adding that consummation of the deal is subject to approval by Kaleyra's stockholders, certain regulatory approvals, and other customary closing conditions.

Upon closing of the transaction, expected in six to nine months, Kaleyra will become a subsidiary of Tata Communications Limited. For the full year ended 31st December 2022, Kaleyra reported revenue of $339.2 million, an increase of 26.7 per cent compared to the full year 2021 (32 per cent increase in constant currency).

With this transaction, Tata Communications said it will gain an industry-proven platform with strong capabilities and scale. "Kaleyra brings a stronghold in the business communications market in banking and financial services, retail and digital commerce industries across global markets, in addition to a strong team with expertise in technology, engineering, and research and development," the statement said.

Tata Communications also expects to benefit from Tier 1 carrier connections in the US, ready connectors to third-party platforms, and video services without the need for additional software plugins.

Commenting on the acquisition, Tata Communications MD and CEO AS Lakshminarayanan said that with this investment in Kaleyra, the company will accelerate its push into the customer interactions platform market and fortify its global CommTech position. 

"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," he said.

Shares of Tata Communications jumped over 1 per cent to settle at 1582.10 on BSE on Wednesday.