Tata Communications shares fall over 4% on acquisition of US-based company

Tata Communications’ shares fell by 4% after the company announced its plans to acquire communication platform service provider Kaleyra for $100 million. In addition to the acquisition, Tata Communications will also take on Kaleyra’s gross debt of $224.9 million and net debt of $149.9 million. The stock’s day RSI (14) is at 67.6, suggesting it is not yet oversold. Tata Communications CEO A.S. Lakshminarayanan stated that the acquisition is attractive due to the geographical complementarity between Tata Communications’ product Digo and Kaleyra’s offerings.