Tata Communications announced on Wednesday its definitive agreement to acquire Kaleyra, a US-based omnichannel integrated communication services provider, in a cash deal worth $100 million. Under the terms of the agreement, Tata Communications will purchase 100% stake in Kaleyra for $7.25 per share, representing a substantial premium compared to the stock’s closing price of $0.13 on June 28.
In addition to the equity acquisition, Tata Communications will assume Kaleyra’s outstanding debts. The startup currently has a gross debt of $224.9 million and a net debt of approximately $150 million.
The acquisition will enable Tata Communications to leverage Kaleyra’s resources, expertise, and scale to strengthen its presence in the United States. The move will also facilitate the synergy of Tata Communications’ extensive global client network to enhance and expand Kaleyra’s operations in the US.
This strategic acquisition aligns with Tata Communications’ goal of solidifying its position in the communications technology market and advancing its industry 4.0 offerings. The transaction is subject to various conditions and regulatory approvals and is expected to be completed within the next six to nine months. Following the completion of the deal, Kaleyra will operate as a subsidiary of Tata Communications.
Tata Communications’ Managing Director and CEO, AS Lakshminarayanan, stated, “With this investment in Kaleyra, we will accelerate our push into the customer interactions platform market and fortify our global CommTech position… We will further build intelligent, intuitive, and innovative multi-channel communication solutions to unlock new growth opportunities for our customers.”
In response to the announcement, Kaleyra’s CEO and co-founder, Dario Calogero, expressed his enthusiasm, stating, “This is a great day for Kaleyra and our shareholders, and our employees worldwide… working together with a great technology leader like Tata Communications.”
Kaleyra, a publicly listed company on the New York Stock Exchange, offers a suite of proprietary tools for user personalization through chatbots, messaging, video, and push notifications. The company’s client base spans various sectors, including banking and financial services, retail, and digital commerce.
Tata Communications intends to leverage Kaleyra’s capabilities to strengthen its position in the Communication Platform as a Service (CPaaS) market. The combined entity will compete globally against industry players such as Twilio, Tanla, Route Mobile, and Netcore Cloud. According to a report, the global CPaaS market is projected to reach a size of $45.3 billion by 2027.
