Tata Communications today announces the successful completion of the India data centre joint venture transaction with ST Telemedia, a strategic global investor focused on communications, media and technology sectors.
In May 2016, the parties announced their entry into definitive agreements whereby ST Telemedia, through its wholly owned subsidiary, ST Telemedia Global Data Centres (STT GDC), agreed to acquire a 74% majority stake in Tata Communications’ data centre business in India and Singapore. The transaction for STT GDC’s acquisition of the majority stake in the India data centre business has been completed and is estimated at 100% enterprise value of Rs 31.4 bn. Tata Communications remains a significant shareholder. The transaction for the Singapore data centre joint venture is expected to close shortly.
The strategic partnership provides both companies with the opportunity to further grow their data centre businesses, offering advanced managed data centre services that enable digital transformation for customers.
Since the May announcement, both companies have been working closely to identify areas for business integration to enhance customer service and realise the full potential of the business partnership. Both partners remain committed to ensuring a smooth transition for existing customers and employees of Tata Communications’ India and Singapore data centres into the broader STT GDC platform.