Tata Communications will pay all cash for messaging firm Kaleyra

Tata Communications announced an all-cash acquisition of US-based business messaging provider Kaleyra for about $100 million (roughly Rs. 820 crore) on Wednesday.

Kaleyra operates in over 190 countries and offers integrated communication services through a collection of proprietary platforms, including messaging, video, push notifications, e-mail and voice-based services, and chatbots.

"Tata Communications has agreed to acquire Kaleyra, Inc in a cash-only transaction, for a total consideration to Kaleyra shareholders of approximately $100 million, including the assumption of all outstanding debt," Tata Communications stated in a statement.

According to the statement, Tata Communications will get an industry-proven platform with great capabilities and scalability as a result of this purchase.

"Kaleyra Inc will become a subsidiary of Tata Communications Limited upon the transaction's completion, which is expected in six to nine months," the statement stated.

Kaleyra claims to have a significant presence in the business communications sector in the banking and financial services, retail, and digital commerce industries across worldwide markets, as well as a staff with competence in technology, engineering, and R&D.

According to the release, Tata Communications will also benefit from Tier 1 carrier connections in the United States, ready connectors to third-party platforms, and video services that do not require extra software plug-ins.

"We are excited about Kaleyra's extraordinary talent and demonstrated capabilities in next-generation technologies." "With this acquisition, we will continue to build intelligent, intuitive, and innovative multi-channel communication solutions to unlock new growth opportunities for our customers," stated AS Lakshminarayanan, MD and CEO of Tata Communications.

The resultant firm will capitalise on Tata Communications' global enterprise client base, which includes 300 Fortune 500 organisations, mobile network operator (MNO) connections, and global development potential.

Kaleyra recorded sales of $339.2 million (about Rs. 2,780 crore) for the fiscal year ending December 31, 2022.

"When I co-founded Kaleyra with my co-founder Simone Fubini 24 years ago, I had no idea that our journey would take us from a small Italian startup to global expansion, a publicly traded NYSE company, and now collaborating with a great technology leader like Tata Communications." "This is an exciting day for Kaleyra, our shareholders, and our global employees," stated Kaleyra founder and CEO Dario Calogero.