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

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 100 per cent stake in ValueFirst Digital Media Private Limited from US-headquartered Twilio for an all-cash consideration of USD 42 million (Rs 346 crore), subject to upward closing adjustments in the range of USD 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 5 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 headquartered in Gurugram, with additional offices in Bengaluru, Chennai, Hyderabad, Kolkata and Mumbai. VF Digital India also has its presence through its subsidiaries in the USA and Singapore.

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

"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 SMS, Tanla will further strengthen its revenue market share to about 45 per cent. In addition, this acquisition will help scale other key channels like WhatsApp with a sizable 15 per cent share approximately," Tanla said in a statement.

Vishwadeep Bajaj, founder of ValueFirst, will lead both the acquisitions.

"I am very excited to join Tanla, the largest CPaaS player in India, and I am confident that we will benefit from significant synergies and scale to address the needs of our enterprises better. I would like to thank Twilio for their support in growing our business over the past couple of years," Bajaj said.