Tata Communications to acquire Kaleyra for about $100 million in an all-cash deal

According to the business's announcement on Wednesday, Tata Communications will purchase the US-based enterprise messaging provider Kaleyra for around $100 million in cash.

According to the announcement, Tata Communications would obtain an established platform with great capabilities and scale through this deal.

 With this transaction, Tata Communications 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 & 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 plugins, the company said in the filing.   

Kaleyra, a company with operations in more than 190 nations, offers integrated communication services through a collection of proprietary platforms. These platforms enable chatbots, messaging, video, push notifications, email, and targeted personalization through voice-based services and video. For a total compensation to Kaleyra shareholders of almost USD 100 million and the assumption of all outstanding debt, Tata Communications has agreed to buy Kaleyra, Inc. in a cash-only deal for a price per share of USD 7.25.

Kaleyra Inc. will merge with Tata Communications Limited when the deal closes, which is anticipated to happen in six to nine months, according to the announcement. In addition to a staff with experience in technology, engineering, and research and development, Kaleyra asserts to have a significant position in the business communications sector in the banking and financial services, retail, and digital commerce industries across worldwide marketplaces.

Tata Communications will also profit from connections to Tier 1 carriers in the US, ready connectors to third-party platforms, and video services that don't require additional software plug-ins.

Source: Media reports