Tanla to acquire ValueFirst Group in all-cash deal of up to Rs 395 crore

Corporate correspondent Tanla said it will acquire ValueFirst and its subsidiaries in an all-cash deal amounting to Rs.395 crore.

Tanla will acquire 100 per cent stake in ValueFirst Digital Media Private Limited from US-based Twilio for an all-cash consideration of US$ 42 million (Rs. 346 crore), subject to upward closing adjustments in the range of US$ 2.5-3.5 million ( 20-29 crores), 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 amount of Rs.20 crore through a combination of primary investment and secondary purchase from existing shareholders, subject to closing terms, according to the filing.

The acquisition of Value First Middle East FZC is expected to close by September 2023.

“The acquisition of ValueFirst will cement our undisputed market leadership in India. We believe in only meaningful acquisitions and have a proven track record with the acquisition of Karix, which has seen EBITDA grow 20x over the past five years. I am confident We are going to embark on a similar journey with ValueFirst to unlock massive value,” said Uday Reddy, Chairman and CEO of Tanla Platforms.

VF Digital India was incorporated in 2003 and is headquartered in Gurugram, with additional offices in Bengaluru, Chennai, Hyderabad, Kolkata and Mumbai. VF Digital India also has a presence through its subsidiaries in the USA and Singapore.

The filing said ValueFirst Middle East FZC has a presence in the UAE, Saudi Arabia and Indonesia markets and gives Tanla a strong global footprint.

“The acquisition of ValueFirst will cement Tanla as the undisputed market leader in the Indian CPaaS space with a share of more than 35 percent. In SMS, Tanla will boost its revenue market share to around 45 percent. In addition, this acquisition will help expand key channels Others are like WhatsApp with a large share of about 15 percent.”

ValueFirst founder Vishwadeep Bajaj will lead the acquisitions.

“I am very excited to be joining Tanla, the largest CPaaS operator in India, and I am confident that we will leverage the great synergies and scale to better meet the needs of our organizations. I would like to thank Twilio for their support in growing our business,” Bajaj said.

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