Tata Communications, a global digital ecosystem enabler, has announced its acquisition of Kaleyra, Inc., a global omni-channel integrated communication services provider. This strategic move will empower global enterprises to offer personalised experiences to their customers, thanks to Kaleyra’s targeted personalisation platforms for messaging, video, push notifications, email, voice-based services, and chatbots.
Tata Communications will gain not only a proven platform with strong capabilities and scale but also a foothold in the business communications market in industries such as banking and financial services, retail, and digital commerce across global markets. Additionally, Tata Communications will 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.
One of the key advantages of this acquisition is the leveraging of Tata Communications’ large base of enterprise customers worldwide, including 300 of the Fortune 500 companies. These customers, along with the extensive mobile network operator (MNO) connections and global expansion opportunities, will further contribute to the growth potential of the resulting business.
Tata Communications is recognised as a global digital ecosystem enabler that powers today’s fast-growing digital economy in more than 190 countries and territories. This extensive reach and expertise will provide additional benefits to the business, allowing it to tap into new markets and opportunities.
The acquisition of Kaleyra, Inc. by Tata Communications is a cash-only transaction, with a total consideration of approximately USD 100 million and the assumption of all outstanding debt. The boards of directors of both Tata Communications and Kaleyra have unanimously approved this deal. However, it is subject to approval by Kaleyra’s stockholders, certain regulatory approvals, and other customary closing conditions. The transaction is expected to close in six to nine months, after which Kaleyra Inc. will become a subsidiary of Tata Communications Limited.
For the full year ended December 31, 2022, Kaleyra reported revenue of USD$339.2 million, representing a 26.7% increase compared to the previous year. This growth showcases Kaleyra’s strong performance and potential for further expansion under the Tata Communications umbrella.
A.S. Lakshminarayanan, MD and CEO of Tata Communications, expressed his excitement about the investment in Kaleyra, noting that it will accelerate their push into the customer interactions platform market and strengthen their global CommTech position. He also highlighted Kaleyra’s remarkable talent and their expertise in next-gen technologies. This acquisition will enable Tata Communications to build intelligent, intuitive, and innovative multi-channel communication solutions that unlock new growth opportunities for their customers.
Mysore Madhusudhan, Executive Vice President of Collaboration and Connected Solutions at Tata Communications, emphasised their commitment to offering targeted communication solutions for enterprises and their customers in the industry 4.0 world. With the combined forces of Tata Communications and Kaleyra, they aim to pave the way for the next wave of intelligence in enterprise communications globally.
Dario Calogero, Founder and CEO of Kaleyra, expressed his delight at partnering with Tata Communications, stating that it is a great day for Kaleyra, its shareholders, and employees worldwide. He reflected on the company’s journey from a small Italian startup to a publicly listed NYSE company and now an integral part of Tata Communications.
Dr. Avi Katz, Chairman of the Board of Directors of Kaleyra, commended the Kaleyra team for their dedicated and professional work. He also highlighted the significant premium offered in the transaction, which delivers value creation to all Kaleyra stakeholders. Dr. Katz expressed excitement for the next chapter in the Kaleyra journey as an essential part of the Tata Communications enterprise.
In conclusion, the acquisition of Kaleyra, Inc. by Tata Communications brings forth numerous benefits for global enterprises. The integration of Kaleyra’s targeted personalisation platforms and Tata Communications’ extensive customer base, mobile network operator connections, and global reach will enable businesses to offer personalised experiences to their customers.
This move also solidifies Tata Communications’ position in the customer interactions platform market and strengthens their overall CommTech capabilities. With the combined forces of Tata Communications and Kaleyra, the next wave of intelligence in enterprise communications is expected to usher in a new era of growth and innovation.