In New Delhi: Tata Communications, a leading provider of a new world of communications, has reached a definitive agreement to acquire BitGravity, a compay which is into content delivery network (CDN). BitGravitys network and products accelerate the delivery of media assets to end-users and enables scalable, real-time video communications over the Internet.
Upon successful completion of the transaction, Tata Communications (Netherlands) B.V. will own 100 percent BitGravity, Inc., which will operate as a wholly-owned subsidiary of Tata Communications.
In 2008, Tata Communications entered into a strategic alliance with BitGravity that included the licensing BitGravitys CDN technology and the federation of BitGravitys and Tata Communications delivery networks. The company also made a strategic investment of $11.5mn in BitGravity. The alliance enabled Tata Communications to enter the market with its own global CDN in 2008 and has resulted in successful traction with high profile media, content and gaming companies in Europe, Asia and India such as NDTV, IAH Games, Quick Heal Technologies and Nimbus Communications.
Two years ago, we made an investment in BitGravity to provide content delivery services for Tata Communications said Genius Wong, Senior Vice President, Global Network Services, Tata Communications.
With the success weve 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 bet on BitGravitys vision and people to provide innovative video services. We are ecstatic that this will be a positive outcome for all the stakeholders; we are equally excited about what this means for BitGravity and its products going forward, said Perry Wu, CEO and co-founder of BitGravity. As a combined entity, we can propel our position in the market, and the opportunity to accelerate our vision on a significantly larger scale was one we couldnt pass up.
BitGravity, a privately held company located in Burlingame, California, was founded in mid-2006 and launched its services in 2008. BitGravity initially raised a total of $13.5mn in two rounds of funding from angels and from Tata Communications.
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