Singapore Technologies Telemedia (ST Telemedia) has arranged to acquire a 74% stake in Tata Communications' data center business in India and Singapore.
Tata Communications will retain the remaining 26% stake and act as a joint venture partner for the data center operations, which include 14 facilities in key cities across India plus three in Singapore.
ST Telemedia is conducting the transaction through subsidiary ST Telemedia Global Data Centres (STT GDC).
The terms of the deal value Tata Communications' entire data center business at around $640 million, the Wall Street Journal reported.
ST Telemedia executive director Sio Tat Hiang said the merger will allow STT GDC to expand its data center network to span four geographies, including strong bases in the key growth markets of India and China.
“This partnership marks another key milestone in STT GDC’s growth. Since ST Telemedia’s initial investment in the data center business in mid-2014, we have made remarkable progress in building a formidable data center footprint internationally with strategic presence in key economic hubs to capture industry demand,” he said.
“The latest addition of India to the STT GDC network will be a major impetus to advance the company’s ambition to be a significant global data center service provider.”