MARKETS

Tata Communications Flat as Unit Buys 51% Stake in US AI Firm for Rs 227 Crore

Tata Communications
The acquisition was completed on 1st December 2025.

Shares of Tata Communications Ltd are trading flat after touching a day’s high of Rs 1,854.30 on 2nd December. This occurred even as the company informed the exchanges that its wholly owned subsidiary, Tata Communications (Netherlands) BV, has acquired a 51% stake in Commotion Inc. for $25.5 million, or around Rs 227 crore, on a fully diluted basis.

Tata Communications said the acquisition was completed on a fully diluted basis through a mix of buying shares from existing investors and infusing fresh capital into Commotion Inc. Of the total $25.5 million deal value, $15.5 million will be used to purchase shares from the founders and other investors. In comparison, $10 million will be invested directly into the company.

Commotion Inc. offers AI-driven tools that help enterprises deliver personalised, real-time customer experiences. Its platform provides Voice AI, omnichannel automation and autonomous digital agents. These tools enable businesses to automate complex tasks, improve customer engagement at scale and innovate across both customer-facing and internal functions.

Tata Communications said the acquisition will strengthen its customer interaction suite by adding advanced agentic AI and orchestration capabilities. This will allow it to offer more intelligent and personalised solutions. Commotion also operates a subsidiary in India and provides enterprise solutions using its proprietary software.

The company posted revenue of $118,750 (Rs 1.06 crore) in 2024. The acquisition was completed on 1st December 2025.

At 11:03 AM, shares of Tata Communications were trading 0.53% lower at Rs 1,826.80 on NSE.

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