The acquisition represents a substantial premium over Kaleyra’s most recent closing price.

Tata Communications, a global enabler of digital ecosystems, has engaged into a definitive agreement with Tata Communications Limited to acquire Kaleyra, Inc. in order to enable global enterprises to provide personalised customer experiences.  Kaleyra is a global provider of multichannel combined communication services that offers customized messaging, video, text alerts as well as chatbots.

Tata Communications will acquire an industry-proven platform with robust capabilities and scope as a result of this transaction. In addition to a strong team with expertise in technology, engineering, and research & development, Kaleyra possesses a dominant position in the business communications market for the banking and financial services, retail, and digital commerce industries in global markets. Tata Communications will also gain access to Tier 1 carrier connections in the United States, connectors to third-party platforms, and video services that do not require additional software extensions.

The resulting business will capitalize on Tata Communications’ global enterprise customer base, which includes 300 Fortune 500 companies, extensive mobile network operator (MNO) connections, and global expansion opportunities. It will benefit from the global digital ecosystem enabler that enables the digital economy’s rapid expansion in over 190 countries and territories today.

Tata Communications has consented, per the terms of the agreement, to acquire Kaleyra, Inc. in a cash-only transaction, at a price per share of USD 7.25, for a total consideration to Kaleyra shareholders of approximately USD 100 million, as well as the assumption of all outstanding debt. The Boards of Directors of both Tata Communications and Kaleyra have approved this transaction unanimously. The transaction is contingent on stockholder approval, regulatory approvals, and other customary closing conditions. Kaleyra Inc. will become a subsidiary of Tata Communications Limited upon completion of the transaction, which is anticipated to occur within six to nine months. 

The managing director and chief executive officer of Tata Communications, A.S. Lakshminarayanan, stated that with this investment in Kaleyra, the company will accelerate its entry into the market for customer interactions platforms and strengthen its global CommTech position. 

Commenting on the acquisition, Mysore Madhusudhan, Executive Vice President, Collaboration and Connected Solutions, Tata Communications, said, “As we strengthen our position in the industry 4.0 world, we are committed to providing enterprises and their customers with enhanced targeted communications solutions. We are confident that our combined efforts with Kaleyra will pave the way for the next global generation of enterprise communications intelligence.”

Dario Calogero, Founder and CEO of Kaleyra, stated, “When we launched Kaleyra 24 years ago with my co-founder Simone Fubini, I could not have imagined that our journey would take us from a small Italian startup to global expansion, a NYSE-listed company, and now a partnership with a great technology leader such as Tata Communications. This is a wonderful day for Kaleyra, its shareholders, and its global workforce.”

Dr. Avi Katz, Chairman of the Board of Directors of Kaleyra, stated, “I am very satisfied with today’s outcome, which is the result of the team’s hard work and professionalism. It has been an honor to be a part of the Kaleyra team since their public listing journey began in late 2019, as well as throughout the company’s substantial funding and GigCapital’s strategic expansions. 

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