Singapore Technologies Telemedia (ST Telemedia) has entered into definitive agreements with Tata Communications whereby ST Telemedia, through ST Telemedia Global Data Centres (STT GDC), will upon closing of the transaction acquire a 74 percent of majority stakes in the data centre business of Tata Communications in India and Singapore.
"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.," said Sio Tat Hiang, Executive Director of ST Telemedia.
Tata Communications will hold the remaining 26 percent stake in the business. The joint venture will include the 14 data centres of Tata Communications in India and three facilities in Singapore. Currently, the data centres service blue chip enterprises in Asia, e-commerce platforms and global multi-national companies. Both companies said they will work in partnership to ensure service continuity for customers and employee engagement.
"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," said Vinod Kumar, Managing Director and CEO of Tata Communications.
The acquisition is expected to expand and strengthen the global data centre network of STT GDC to span four geographies including in India and China.
"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," said Bruno Lopez, CEO of STT GDC.
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