Tata Communications today announced that it has signed an agreement to acquire BitGravity, a California-based content delivery network (CDN). The terms of the transaction were not disclosed.
BitGravity was one of the first companies to deliver high-definition video on the Internet, high-definition live streaming, and other interactive applications. It has a patent-pending network which can deliver HD-quality video on demand, live streams, and interactive applications for massive audiences over the Internet, the company said on its web-site.
In 2008, Tata Communications entered into a strategic alliance with BitGravity that included licensing of BitGravity’s CDN technology. Tata had then invested $11.5 million in convertible debt in BitGravity.
“Two years ago, we made an investment in BitGravity to provide content delivery services for Tata Communications. With the success we have seen in the marketplace and our ownership of BitGravity, we can now fully invest in the potential that exists around the globe and accelerate the delivery of new features and services to our customers,” said Genius Wong, senior vice president of Global Network Services, Tata Communications.
The alliance had enabled Tata to enter the market with its own global CDN and bagged work from companies like NDTV, IAH Games, Quick Heal Technologies and Nimbus Communications.
“As a combined entity, we can propel our position in the market, and the opportunity to accelerate on a significantly larger scale was one we couldn’t pass up,” said Perry Wu, CEO and co-founder of BitGravity. BitGravity, a privately held company located in Burlingame, California, was founded in 2006 and launched its services in 2008.
