Singapore Technologies Telemedia (ST Telemedia) has entered into definitive agreements to acquire 74% in Tata Communications’ data centre business in India and Singapore.
The enterprise value for the Indian unit is Rs 3,130 crore and 232.4 million Singapore dollars for the Singapore data centre business, the Indian company said.
According to the deal, ST Telemedia, a strategic global investor focused on the communications, media and technology sectors, through ST Telemedia Global Data Centres (STT GDC), will acquire the stake and Tata Communications will remain as a significant shareholder, holding the remaining 26% stake in the businesses.
The joint venture will include Tata Communications’ 14 data centres in key cities across India and its 3 Singapore facilities. The data centres currently service a highly-diversified customer base, including blue chip enterprises in Asia, ecommerce platforms and global multi-national corporations. Both parties will work in partnership to ensure service continuity for customers and employee engagement, Tata Communications said. With this acquisition, STT GDC will further expand and strengthen its global data centre network to span 4 geographies, including strong bases in 2 of Asia’s largest growth markets — India and China.
Tata Communications will retain a stake in the colocation market in these important markets, while honing its focus on the development and introduction of its advanced managed services portfolio (including IP, cloud enablement and unified communications services), and continuing to invest in its strategic partnerships globally, the Indian company said.
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