Singapore and India – May 19, 2016
Singapore Technologies Telemedia (ST Telemedia), a strategic global investor focused on the communications, media and technology sectors, and Tata Communications, a leading global communications provider, today announce that they have entered into definitive agreements whereby ST Telemedia, through ST Telemedia Global Data Centres (STT GDC), will upon closing of the transaction acquire a 74% majority stake in Tata Communications’ data centre business in India and Singapore. Tata Communications will remain as a significant shareholder, holding the remaining 26% stake in the businesses.
The joint venture will include Tata Communications’ fourteen data centres in key cities across India and its three Singapore facilities. The data centres currently service a highly-diversified customer base, including blue chip enterprises in Asia, e-commerce platforms and global multi-national corporations. Both parties will work in partnership to ensure service continuity for customers and employee engagement.
With this acquisition, STT GDC will further expand and strengthen its global data centre network to span four geographies, including strong bases in two of Asia’s largest growth markets – India and China. While Tata Communications will retain a stake in the colocation market in these important markets, its focus will be 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.
Vinod Kumar, Managing Director and CEO, Tata Communications, said: “Today marks a milestone moment in Tata Communications’ evolution. We have been proud of the tremendous growth of our data centre subsidiary over a relatively short time. This new joint venture partnership will now allow us to hone our strategic focus on advanced services within the data centre that enable digital transformation for our customers, in addition to infrastructure services. Our new partnership also gives us the opportunity to redeploy capital behind other areas of our business, to further broaden the portfolio of services we can offer to meet our customers’ current and future requirements.”
Sio Tat Hiang, Executive Director, ST Telemedia, said: “This partnership marks another key milestone in STT GDC’s growth. Since ST Telemedia’s initial investment in the data centre business in mid-2014, we have made remarkable progress in building a formidable data centre footprint internationally with strategic presence in key economic hubs to capture industry demand. The latest addition of India to the STT GDC network will be a major impetus to advance the company’s ambition to be a significant global data centre service provider. We are pleased to partner with an established company like Tata Communications, to pursue opportunities in the growing data centre market.”
In 2014, the Indian data centre business of Tata Communications Limited was transferred to its wholly-owned subsidiary Tata Communications Data Centers Private Ltd (TCDC) through a High Court approved process. Today, TCDC owns and operates a total of fourteen data centres, including facilities in Delhi, Mumbai, Bengaluru, Chennai, Kolkata, Hyderabad and Pune.
Rangu Salgame, CEO of Growth Ventures and Service Provider Group, Tata Communications, added: “We’re delighted to be partnering with ST Telemedia to create this exciting joint venture, bringing together two great brands. Our companies share a very similar ethos and set of values: both organisations are long term investors, focusing on performance, value and growth. Both organisations also share an impeccable commitment to customer service excellence. Looking ahead, I am confident that our customers can expect the same high levels of service as they receive today and a partner who will bring additional offerings to enable their cloud and ecommerce growth. It is this aligned commitment to our customers that makes this strategic partnership so compelling.
Bruno Lopez, CEO of STT GDC, added, “We are excited about this alliance and the opportunities it brings to stakeholders of both partners. With this investment, STT GDC is well positioned to become one of the largest Asian-headquartered data centre companies with significant platforms in key markets where we continue to see strong growth. STT GDC will focus on leveraging the complementary strengths and experience of this partnership to deliver superior solutions to meet our customers’ data centre, cloud and managed services requirements as their businesses grow in India, Singapore and beyond.”
About Tata Communications
Tata Communications Limited (CIN no: L64200MH1986PLC039266) along with its subsidiaries (Tata Communications) is a leading global provider of A New World of Communications™. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers.
The Tata Communications global network includes one of the most advanced and largest submarine cable networks and a Tier-1 IP network with connectivity to over 240 countries and territories across 400 PoPs, as well as nearly 1 million square feet of data centre and collocation space worldwide.
Tata Communications’ depth and breadth of reach in emerging markets includes leadership in Indian enterprise data services and leadership in global international voice. Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India.
Forward-looking and cautionary statements
Certain words and statements in this release concerning Tata Communications and its prospects, and other statements, including those relating to Tata Communications’ expected financial position, business strategy, the future development of Tata Communications’ operations, and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, including financial, regulatory and environmental, as well as those relating to industry growth and trend projections, which may cause actual results, performance or achievements of Tata Communications, or industry results, to differ materially from those expressed or implied by such forward-looking statements. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, failure to increase the volume of traffic on Tata Communications’ network; failure to develop new products and services that meet customer demands and generate acceptable margins; failure to successfully complete commercial testing of new technology and information systems to support new products and services, including voice transmission services; failure to stabilize or reduce the rate of price compression on certain of the company’s communications services; failure to integrate strategic acquisitions and changes in government policies or regulations of India and, in particular, changes relating to the administration of Tata Communications’ industry; and, in general, the economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in Tata Communications’ control, include, but are not limited to, those risk factors discussed in Tata Communications Limited’s Annual Reports. The Annual Reports of Tata Communications Limited are available at www.tatacommunications.com. Tata Communications is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements.
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