Tata Communications (Netherlands) B.V, a wholly-owned indirect subsidiary of Tata Communications Limited (TCL), has entered into a membership investment purchase agreement to acquire a 100 per cent equity stake in New York-headquartered, The Switch Enterprises LLC, for $58.8 million.
As part of the transaction, Tata will acquire assets of the subsidiaries of Switch Enterprises based out of Canada, the US and the UK, TCL said in a regulatory filing.
The acquisition is expected to be completed (that is closing of the proposed transaction) within 4-6 months or as soon as possible thereafter, subject to satisfaction of customary legal requirements, as per the filing.
Switch Enterprises is one of the leading managed services providers for live production and video transmission. It produces and delivers live content to any outlet including linear, on-demand, and streaming platforms across fiber, satellite, or the internet.
The company had a consolidated revenue of $81.6 million for the year ended December 31, 2021.
Tata Communications, in a statement, said it will support Switch customers with global reach to over 190 countries and territories, and Switch Enterprises will bring state-of-the-art live production capabilities helping organisations to produce high-quality, more immersive content faster and more efficiently.
On completion of the transaction, Switch Enterprises will join the media and entertainment services business under Dhaval Ponda, Global Head of Media & Entertainment Business, Tata Communications.