Singapore Technologies Telemedia to buy 74 per cent of Tata Communications data centre business

Tata Communications has entered into a definitive agreement with Singapore Technologies Telemedia to hive off stake in its data centre business. As per the agreement, the latter will acquire 74 per cent in Tata Communications’ data centre business in India and Singapore, through its subsidiary ST Telemedia Global Data Centres (STT GDC), for approximately $630 million. Upon the completion of the sale, Tata Communications will continue to hold 26 per cent in the business, which includes 14 data centres in key cities in India and three in Singapore. With this acquisition, STT GDC’s global data centre network will span four geographies, including India and China. Meanwhile, Tata Communications will shift its focus towards the development and introduction of its advanced managed services portfolio (including internet protocol, cloud enablement and unified communication services), and investing in strategic partnerships globally.