Tata Communications Buys 51% Stake In Commotion Inc. For $25 Million
The deal gives Tata Communications control of the US digital-experience firm as it looks to deepen global enterprise and media services.
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[Image source: Chetan Jha/MITSMR India]
Tata Communications Ltd has acquired a 51% stake in US-based AI software as a service (SaaS) firm Commotion Inc., the company said in a filing to the stock exchanges on Monday.
The transaction, valued at about ₹227 crore ($25 million), was completed through Tata Communications (Netherlands) B.V., the company’s wholly owned subsidiary.
The deal includes a purchase of shares from existing investors as well as fresh capital infusion. Commotion recorded revenue of $118,750 for the year ended 31 December 2024.
The shares of Tata Communications jumped about 3% in intraday trading on Wednesday
The acquisition aims to strengthen Tata Communications’ customer interaction suite by integrating agentic AI and orchestration capabilities.
According to the company, this will enable more automated, intelligent and personalised solutions for enterprise customers.
Commotion’s platform focuses on AI-driven customer experience through Voice AI, omnichannel CX automation and autonomous digital agents. It helps companies automate complex workflows and deliver real-time personalization across customer-facing and internal functions.
S. Lakshminarayanan, Managing Director and Chief Executive Officer of Tata Communications, said, “This acquisition marks a significant step in our journey to redefine customer experience in the AI era. With Commotion’s capabilities already integrated into Tata Communications Kaleyra, we are seeing phenomenal customer traction.”
“Together, we will unlock AI’s full potential in many industry sectors, building solutions that scale responsibly and transform the way the world works,” Murali Swaminathan, Chief Executive Officer of Commotion Inc., said.
The company said that the transaction will be executed as a cash-only acquisition on a fully diluted basis through a Stock Purchase Agreement.
