Telecom and hosting provider Tata Communications said today that it has reached a definitive agreement to acquire BitGravity, a privately-held content delivery network (CDN). Once the transaction is completed, BitGravity will operate as a wholly-owned subsidiary of Tata Communications. The deal negotiations were first reported last week by Dan Rayburn. Terms are not being disclosed.
In 2008, Tata Communications licensed BitGravity’s CDN technology and also made a strategic investment of $11.5 million in the company. The alliance enabled Tata to launch its own global CDN in 2008 and hashelped Tata gain traction with 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 we’ve 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 BitGravity’s vision and people to provide innovative video services,” 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 couldn’t pass up.”
BitGravity was founded in mid-2006 and launched its services in 2008. The company initially raised a total of $13.5mn in two rounds of funding from angels and from Tata Communications.