The Dutch arm of Tata Communications has entered into an agreement to fully acquire Switch Enterprises, a US-based media service provider, for a cash consideration of $58.8 million.
In a regulatory filing on BSE, Tata Communications (Netherlands) B.V., confirmed that it has entered into a membership investment purchase agreement to acquire 100 per cent equity stake in Switch Enterprises. With this acquisition, Tata Communications will help the US-based company to reach over 190 countries and territories.
The acquisition, however, is subject to regulatory approvals and is expected to be conclude within 4-6 months. Shares of Tata Communications were trading with mild losses of 0.7 per cent at Rs 1,261.30 apiece in mid-day trade.
Switch Enterprises is a managed services providers for live production and video transmission. It produces and delivers live content to any outlet, including linear, on-demand and streaming platforms across fiber, satellite or internet. The company recorded a revenue of $81.6 million for FY21.
According to the statement, the acquisition will provide direct upsell opportunity for Tata Communications’ offerings, which will drive expansion of its video connect business as well as its presence in Europe and North America.