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 organisations 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 100 per cent 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 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 adoption of remote production from any event around the world,” Tata Communications, Chief Strategy Officer, Tri Pham said.
The acquisition of Switch will create direct upsell opportunities for Tata Communications’ solutions, resulting in incremental growth of Tata Communications’ video connect business as well as an expansion of our leadership footprint in media ecosystems in Europe and North America.
The Ford facility in Sanand, which it acquired earlier this year, is undergoing final approvals before being retooled to handle both ICE and EV goods. In 18 months, the company intends to begin consolidating its manufacturing presence. The Indian electric car market is expected to reach 2 million units by the end of the decade, and Tata Motors wants to maintain its dominance in the face of increased competition.
“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 maximise 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.
Also Read:
