Tata Communications has acquired Kaleyra for approximately $100 million.
Kaleyra confirmed that its stockholders approved all proposals regarding its planned acquisition by Tata during a special meeting. Following the completion of this deal, Kaleyra shares will no longer be traded on the NYSE exchange.
The cash-only transaction valued the buyout at $7.25 per share and the purchase includes the assumption of all existing debt.
This marks technology M&A deal number 269 that ChannelE2E and MSSP Alert have reported on in 2023. See more than 2,000 technology M&A deals for 2023, 2022, 2021, and 2020 listed here.
Tata Communications Limited, founded in 2002, is headquartered in Mumbai, India. The company has 15,144 employees as listed on LinkedIn. Tata’s areas of expertise include unified communications, internet, managed network, managed network security, broadband, voice, video, telepresence, MPLS, ethernet, hosting, collocation facilities, cloud and data center, subsea cable network, terrestrial cable network, media and entertainment, secure connected digital experience, secure connected cigital workplace, and digital customer experience platform.
Kaleyra, founded in 1999, is based in Milan, Italy. The company has 729 employees listed on LinkedIn. Kaleyra’s areas of expertise include mobile communication services, video, push notifications, email, voice services, and chatbots.
Transaction Implications
With the acquisition of Kaleyra, Tata Communications is poised to enhance its platform capabilities. Kaleyra’s established presence in the global business communications realm, especially in sectors like banking, finance, retail, and digital commerce, is a valuable addition. Moreover, Kaleyra's Tier 1 carrier connections in the U.S. and its ability to integrate third-party platforms without additional software will fortify Tata Communications' offerings.
Kaleyra's 2022 fiscal year revenue was reported at $339.2 million, marking a 26.7% growth from 2021. After the acquisition concludes, Kaleyra will operate as a subsidiary of Tata Communications Limited.
Tata Acquires Kaleyra: Leadership Insight
A.S. Lakshminarayanan, MD and CEO, Tata Communications, expressed:
"With this investment in Kaleyra, we will accelerate our push into the customer interactions platform market and fortify our global CommTech position... We are excited about Kaleyra's remarkable talent and their demonstrated capabilities in next-gen technologies."
Mysore Madhusudhan, executive vice president, Collaboration and Connected Solutions, Tata Communications, remarked:
"As we further our position in the industry 4.0 world, we are committed to offering heightened targeted communications solutions for enterprises and their customers... We are confident our combined forces with Kaleyra will forge the path for the next wave of intelligence in enterprise communications globally."
Dario Calogero, founder and the CEO of Kaleyra, stated:
"When we launched Kaleyra 24 years ago with my co-founder Simone Fubini, I could hardly envision that our voyage would take us from a small Italian startup, to global expansion, a publicly listed NYSE company, and now working together with a great technology leader like Tata Communications."
Dr. Avi Katz, the Chairman of the Board of Directors of Kaleyra, commented:
"I am very pleased with today's outcome, fruits of the dedicated and professional work of the Kaleyra team... This transaction represents a significant premium to the last closing share price and delivers significant value creation to all Kaleyra stakeholders."
Lazard Frères & Co. LLC serves as the financial advisor to Tata Communications, with Goodwin Procter LLP providing legal counsel. Kaleyra has engaged Willkie Farr & Gallagher LLP as their legal representation.
