Enterprise messaging firm Tanla said it will acquire peer ValueFirst and its subsidiaries in an all-cash deal ranging up to Rs 395 crore.
Tanla will acquire a 100 per cent stake in ValueFirst Digital Media Private Limited from US-based Twilio for an all-cash consideration of $42 million (Rs 346 crore), subject to upward closing adjustments in the range of $2.5-3.5 million (Rs 20-29 crore), Tanla said in a filing on Thursday.
The acquisition is expected to close in July 2023.
It will also acquire ValueFirst Middle East FZC for a cumulative consideration of Rs 20 crore through a combination of primary investment and a secondary purchase from the existing shareholders, subject to closing conditions, according to the filing.
The acquisition of ValueFirst Middle East FZC is expected to close by September 2023.
“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 20 times EBITDA growth over the last five years. I am confident we will embark on a similar journey with ValueFirst to unlock massive value,” Tanla Platforms founder chairman and CEO Uday Reddy said.
VF Digital India was founded in 2003 and based in Gurgaon, with additional offices in Bangalore, Chennai, Hyderabad, Calcutta and Mumbai.
VF Digital India also has its presence through its subsidiaries in the US and Singapore.
“The acquisition of ValueFirst will further strengthen Tanla as an undisputed market leader in the Indian CPaaS space with over 35 per cent share.
“In the SMS, Tanla will further strengthen its revenue market share to about 45 per cent. In addition, this acquisition will help scale other key channels such as WhatsApp with a sizable 15 per cent share approximately,” Tanla said.
