Tanla Platforms Limited, India’s leading CPaaS player announced two transformative acquisitions today.
- Signed a definitive share purchase agreement to acquire 100% of ValueFirst Digital Media Private (“ValueFirst”) Limited from US-headquartered Twilio, the customer engagement platform that drives real-time, personalized experiences for today’s leading brands, for an all-cash consideration of $42 million(Rs 346 crores),subject to upward closing adjustments in the range of $2.5 million – $3.5 million). The acquisition is expected to close in July 2023, subject to closing conditions.
- Separate from the transaction with Twilio, signed a binding term sheet to acquire 100% of ValueFirst Middle East FZC for a cumulative consideration of Rs 20 crores through a combination of primary investment and a secondary purchase from the existing shareholders, subject to closing conditions. ValueFirst Middle East FZC has presence in UAE, Saudi Arabia and Indonesia markets and gives Tanla a strong global footprint. This acquisition is expected to close by September 2023.
At an aggregate level across these two distinct acquisitions, Tanla is acquiring entities with ~Rs 950 crores revenue and Rs 52 crores recurring EBITDA. Vishwadeep Bajaj, the founder of ValueFirst will lead both the acquisitions. ValueFirst Digital Media Private Limited will issue RSUs for key talent worth Rs 50 crore (basis the SPA transaction value) vesting over 2 years, to drive performance and retention, the statement said.
The acquisition of ValueFirst will further strengthen Tanla as an undisputed market leader in the Indian CPaaS space with 35%+ share. In SMS, Tanla will further strengthen its revenue market share to ~45%. In addition, this acquisition will help scale other key channels like WhatsApp with a sizable ~15% share.
Uday Reddy, Founder Chairman & CEO, Tanla Platforms Limited said, “Acquisition of ValueFirst will further strengthen our undisputed market leadership in India. We only believe in purposeful acquisitions and have had an incredible track record with Karix acquisition, which has seen 20x EBITDA growth over the last 5 years. I am confident we will embark on a similar journey with ValueFirst to unlock massive value.”
Khozema Shipchandler, President, Twilio Communications said: “Tanla is a leading CPaaS provider in the Indian market as well as a longtime customer and partner of ours, making them a natural fit and ideal home for ValueFirst’s customers and employees. Twilio remains committed to India as well as our strategic partnerships and large employee base in the region.”
Vishwadeep Bajaj, CEO & Founder of ValueFirst said, “I am very excited to join Tanla, the largest CPaaS player in India and I am confident that we will benefit from significant synergies and scale to address the needs of our enterprises better. I would like to thank Twilio for their support to growing our business over the past couple of years.”
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