Tata Communications said that it has entered into a definitive agreement through its wholly owned international subsidiary Tata Communications (Netherlands) B.V. to acquire The Switch Enterprises LLC.
New York-based The Switch is a leading global end-to-end live video production and transmission services provider with reach to top tier sporting venues in North America. It had recorded consolidated revenue of $81.6 million (equivalent to Rs 674.8 crore) in the year ended 31 December 2021.
With this transaction, Tata Communications will gain a strong foothold into the Americas media and entertainment market, extend its portfolio into live video production and become uniquely positioned as an end-to-end media ecosystem player in the entire content development value chain globally.
Under the terms of the agreement, Tata Communications has agreed to acquire 100% equity stake in The Switch Enterprises, LLC and certain of its international assets for a value of approximately $58.8 million (equivalent to Rs 486.3 crore) in a cash only transaction, subject to customary closing adjustments. The closing of the transaction is dependent upon regulatory approvals. The company expects to conclude the transaction within 4-6 months or as soon as possible thereafter, subject to satisfaction of customary legal requirements.
With both companies coming together, Tata Communications will support The Switch customers with global reach to over 190 countries and territories and The Switch will bring live production capabilities helping organisations to produce high quality, more immersive content faster and more efficiently.
Announcing the acquisition, Tri Pham, chief strategy officer, Tata Communications said, "Our combined forces of The Switch's strong presence in North America and Tata Communications' global position will create a formidable powerhouse in the global media ecosystem helping enterprises harness emerging digital consumption patterns to drive innovation and disruption.
In addition, The Switch production infrastructure as a service model will allow Tata Communications customers to accelerate adoption of remote production from any event around the world."
Tata Communications is engaged in the next level of intelligence powered by cloud, mobility, internet of things IoT, collaboration, security, media services and network services, we at Tata Communications are envisaging a new world of communications.
The company's consolidated net profit jumped 25.1% to Rs 532.29 crore on 6.2% rise in net sales to Rs 4,430.74 crore in Q2 FY23 over Q2 FY22.
The scrip shed 0.24% to currently trade at Rs 1266.65 on the BSE.
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