Tata Communications Completes Acquisition of BitGravity
The acquisition, initially announced on 11 January 2011, complements Tata Communications' global media and enterprise strategy. It will add enhanced CDN and streaming capabilities to its growing line-up of value-added hosting, storage, and security services, all of which leverage Tata Communications' global IP network. The addition of BitGravity's product portfolio and its employee skill set will further accelerate the delivery of new features and services to Tata Communications' customers.
"With this acquisition, we are able to combine our global infrastructure with BitGravity's CDN technology and infrastructure to create a larger global footprint and a more efficient cost base. This will provide enhanced content delivery services that further address the needs of media and enterprise businesses" says Genius Wong, Senior Vice President, Global Network Services, Tata Communications.
"There are a number of strong synergies between Tata Communications and BitGravity. As a single entity, we can utilize the best network path within Tata Communications' Global IP network, allowing the organization to further differentiate itself in a noisy, global marketplace. We are looking forward to joining the Tata Communications team together with the exciting opportunities that this deal brings to the industry" says Perry Wu, CEO and co-founder of BitGravity.
In 2008, Tata Communications entered into a strategic alliance with BitGravity that included the licensing of BitGravity's CDN technology and the federation of BitGravity's and Tata Communications' delivery networks. The company also made a strategic investment of $11.5 million in BitGravity, enabling Tata Communications to enter the market with its own global CDN in 2008. This resulted in successful traction with high profile media, content and gaming companies in Europe, Asia and India such as NDTV, Web18, Quick Heal Technologies and Nimbus Communications. The decision to wholly purchase BitGravity was a logical next step to further enhance Tata Communications' global CDN offering.
Tata Communications will execute the integration of the two companies' products, customers and employees with immediate effect to ensure a smooth transition that will deliver instantaneous value for customers, partners and investors.
BitGravity, Inc., built the first video delivery network to deliver affordable, broadcast quality video on demand, live streams and interactive applications to massive audiences on the Internet. BitGravity is based in Burlingame, CA and is privately held, with strategic investment from Allen & Company, Tata Communications, and private investors. The company's innovative services made inroads with major media and internet companies and has received numerous accolades including RedHerring 100, OnHollywood 100, DemoGod, and LightReading's Service Company of the year.
To learn more, please see www.BitGravity.com
Forward-looking and cautionary statements
Certain words and statements in this release concerning Tata Communications and its prospects, and other statements, including those relating to Tata Communications' expected financial position, business strategy, the future development of Tata Communications' operations, and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, including financial, regulatory and environmental, as well as those relating to industry growth and trend projections, which may cause actual results, performance or achievements of Tata Communications, or industry results, to differ materially from those expressed or implied by such forward-looking statements. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, failure to increase the volume of traffic on Tata Communications' network; failure to develop new products and services that meet customer demands and generate acceptable margins; failure to successfully complete commercial testing of new technology and information systems to support new products and services, including voice transmission services; failure to stabilize or reduce the rate of price compression on certain of the company's communications services; failure to integrate strategic acquisitions and changes in government policies or regulations of India and, in particular, changes relating to the administration of Tata Communications' industry; and, in general, the economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in Tata Communications' control, include, but are not limited to, those risk factors discussed in Tata Communications' various filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. Tata Communications is under no obligation to, and expressly disclaims any obligation to, updates or alters its forward-looking statements.
Tata Communications is a leading global provider of a new world of communications. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers.
The Tata Communications Global Network includes one of the most advanced and largest submarine cable networks, a Tier-1 IP network, with connectivity to more than 200 countries across 400 PoPs, and nearly 1 million square feet of data center and collocation space worldwide.
Tata Communications' depth and breadth of reach in emerging markets includes leadership in Indian enterprise data services, leadership in global international voice, and strategic investments in operators in South Africa (Neotel), Sri Lanka (Tata Communications Lanka Limited) and Nepal (United Telecom Limited).
Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India and its ADRs are listed on the New York Stock Exchange. (NYSE: TCL)