Tata Communications has announced that it intends to acquire 100% of BitGravity, a company in which it already holds a stake, for an undisclosed amount. Tata Communications and Allen & Company (a financial investor) are the two main stakeholders in the company. Thus, Tata Communications will be buying out the company and any residual stake held by the company’s employees.
Tata Communications’ performance during 2008-09 was a mixed bag. Its sales increased smartly, by 20.1%, driven by an expansion in the volume of traffic it handled during the year. Its profit declined by 2.4% due to a sharp jump in interest costs.