Tata Communications Limited will acquire Switch Enterprises, a complete live video production company based in New York for 486 crore in an all cash deal, the company announced on Thursday.
Tata Communications to acquire US-based Switch Enterprises for Rs 486 Crore
Together, Tata Communications and The Switch will support The Switch customers which have a global footprint spanning more than 190 countries and territories, and The Switch will bring live production capabilities that will enable businesses to produce high-quality immersive content more quickly and effectively.
Tata Communications Limited will acquire 100 per cent equity stake of Switch Enterprises
Tata Communications (Netherlands) B.V., a wholly-owned indirect subsidiary of Tata Communications Limited, said that as part of the transaction, it will purchase a 100% equity position in Switch Enterprises, LLC, a US company, through its wholly-owned subsidiaries.
The company will acquire the assets of Switch Enterprises, LLC’s subsidiaries in Canada, the United States, and the United Kingdom. Switch is the collective name for Switch Enterprises, LLC, US and all of its subsidiaries.
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“Subject to customary closing adjustments, the total purchase consideration payable for the acquisition of Switch is $58.8 million, or Rs 486.3 crore,” the company stated.
“The Switch’s stronghold in North America and Tata Communications’ global position will work together to forge a formidable powerhouse in the global media ecosystem, assisting businesses in leveraging new digital consumption trends to spur disruption and innovation.
Additionally, The Switch’s production infrastructure as a service approach will speed up the adoption of remote production from any event worldwide, according to Tri Pham, chief strategy officer at Tata Communications.
Acquisition of Switch will enable Tata Communications to position itself as market leader in American and European Media Ecosystems
By acquiring Switch, Tata Communications will be able to directly upsell its products, which will encourage the gradual growth of its video connect business and strengthen its position as a market leader in both the European and American media ecosystems.
“The Switch has a growing role to play in the future of live sports and entertainment as the media business develops, as well as in assisting our clients in maximising their lucrative content. We will expedite this process with Tata Communications by offering stability, investment, and vision to enable future growth “Eric Cooney, President and CEO of The Switch, said.
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