Mumbai: Tata Communications on Tuesday said it has entered into an agreement to acquire BitGravity, which provides network for content delivery over the Internet, for an undisclosed amount.
Terms of the transaction or the deal size were not disclosed.
Upon completion of the transaction, Tata Communications (Netherlands) will own 100% BitGravity, which will operate as a wholly-owned subsidiary of the former, Tata Communications said in a filing to the Bombay Stock Exchange.
In 2008, Tata Communications had entered into a strategic partnership with BitGravity for licensing content delivery network (CDN) technology and federation of networks of both entities.
Tata Communications also made an investment of $11.5 million in the company.
The alliance allowed Tata Communications to enter the market with its own global CDN in 2008 and has resulted in successful traction with media, content and gaming companies like NDTV, IAH Games, Quick Heal Technologies and Nimbus Communications across Europe, Asia and India.
“With the success we’ve seen in the marketplace and our ownership of BitGravity, we can now fully invest in the potential that exists around the globe and accelerate the delivery of new features and services to our customers,” Tata Communications senior vice president (global network services) Genius Wong said.
US-based BitGravity is a privately held company, which was founded in 2006, and launched its services in 2008. BitGravity initially raised a total of $13.5 million in two rounds of funding from angel investors and Tata Communications.