Tata Communications completes acquisition of BitGravity
16 Feb 2011
Mumbai: Telecom services provider Tata Communications today said that it had completed the acquisition of content delivery network BitGravity, which it had first aanounced in January (See: Tata Communications to acquire US-based BitGravity).
Founded in 2006, BitGravity provides broadcast quality video delivery services for the internet and built the first content delivery network (CDN) for interactive broadcasting, optimised to deliver affordable, HD-quality video on demand, live broadcasts, and interactive applications for massive audiences on the internet.
BitGravity will join Tata Communications Ltd. and will be integrated as a Tata Communications operating business subsidiary. Perry Wu will continue to lead the existing team, who will remain after the acquisition. They will operate from San Francisco in conjunction with Tata Communications' global CDN team.
Earlier in 2008, Tata Communications invested $11.5 million in BitGravity that enabled it license BitGravity's CDN technology and the bring together BitGravity's and Tata Communications' delivery networks and enter the market with its own global CDN in the same year. (See: Tata Communications, BitGravity introduce global CDN network).
The partnership generated customers from the media, content and gaming companies in Europe, Asia and India such as NDTV, IAH Games, Quick Heal Technologies and Nimbus Communications.
The acquisition will add enhanced CDN and streaming capabilities to Tata Communications' growing value-added hosting, storage, and security services, all of which utilise Tata Communications' global IP network. The addition of BitGravity's product portfolio and its employee skill set will further accelerate the delivery of new features and services to Tata Communications' customers.
''With this acquisition, we are able to combine our global infrastructure with BitGravity's CDN technology and infrastructure to create a larger global footprint and a more efficient cost base. This will provide enhanced content delivery services that further address the needs of media and enterprise businesses'' says Genius Wong, senior vice president, Global Network Services, Tata Communications.
Tata Communications will execute the integration of the two companies' products, customers and employees with immediate effect to ensure a smooth transition that will deliver instantaneous value for customers, partners and investors.
''There are a number of strong synergies between Tata Communications and BitGravity. As a single entity, we can utilize the best network path within Tata Communications' Global IP network, allowing the organization to further differentiate itself in a noisy, global marketplace. We are looking forward to joining the Tata Communications team together with the exciting opportunities that this deal brings to the industry'' says Perry Wu, CEO and co-founder of BitGravity.
