Tata Communications (Netherlands), a wholly owned subsidiary of Tata Communications has acquired a majority 51% stake in Commotions for a total consideration of nearly Rs 227 crore ($ 25.50 million). Commotion is a US-based AI-enterprise SaaS company. .
Of the total consideration, nearly $15.50 million will be utilised towards the purchase of stocks from the promoter group and external Commotion investors, and approximately $10 million will be used for the purpose of capital contribution in Commotion.
The acquisition will be executed in cash only mode and has been made on a fully diluted basis through a stock purchase agreement, the company added.
Strategic importance of the acquisition
Tata Communications said that integrating Commotion’s AI capabilities into its suite will help deliver smarter and more personalised solutions for both employees and customers. The acquisition is expected to accelerate Tata Communications’ transformation into an AI-first organisation, enhancing the intelligence, adaptability, and future readiness of its digital fabric, the company added.
Leadership comments
AS Lakshminarayanan, MD & CEO, Tata Communications, said: “With Commotion’s capabilities already integrated into Tata Communications Kaleyra, we are seeing phenomenal customer traction. We expect this momentum to further accelerate our evolution into an AI-first organisation, making our Digital Fabric more intelligent, adaptive, and future-ready.”
Murali Swaminathan, CEO, Commotion, added: Together, we will unlock AI’s full potential across multiple industries, building solutions that scale responsibly and transform the way the world works.”
Tata Communication share price
Following the acquisition, the share price of Tata communications opened at Rs 1,840, up marginally from the previous close. Over the past five trading sessions, the company’s stock has delivered a return of nearly 1%.
