Tata Communications announced an all-cash acquisition of New York-based end-to-end live video production company The Switch Enterprises for Rs 486 crore on Thursday. Tata Communications will support The Switch customers with global reach to over 190 countries and territories, and The Switch will bring live production capabilities to help organizations produce high-quality immersive content faster and more efficiently, according to a statement from Tata Communications.
“Tata Communications (Netherlands) B.V., a wholly-owned indirect subsidiary of Tata Communications Limited, will acquire a 100 percent equity stake of Switch Enterprises, LLC, USA and, as part of the transaction, through its wholly-owned subsidiaries,” Tata Communications said.
The assets of Switch Enterprises, LLC’s subsidiaries in Canada, the United States of America, and the United Kingdom will be acquired by the corporation. Switch Enterprises, LLC, USA, and its subsidiaries are referred to collectively as ‘Switch’.
“The total purchase consideration payable for the acquisition of Switch is USD 58.8 million, or Rs 486.3 crore, subject to customary closing adjustments,” the company 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 the adoption of remote production from any event around the world,” Tata Communications, Chief Strategy Officer, Tri Pham said.
Acquisition of Switch will provide a direct upsell opportunity for Tata Communications’ offerings, which will drive the incremental expansion of Tata Communications’ video connect business as well as expand our leading presence in the media ecosystems in Europe and North America. “As the media industry evolves, The Switch has an ever larger role to play in the future of live sports and entertainment and in helping our customers maximize their lucrative content. With Tata Communications we will accelerate this journey providing stability, investment, and vision in support of future growth,” The Switch, President and CEO, Eric Cooney said. PTI PRS MR