Monday, January 10, 2011

Tata Communications to Acquire BitGravity CDN

Tata Communications agreed to acquire BitGravity, a start-up based in Burlingame, California that operates a content delivery network (CDN). Financial terms were not disclosed.

BitGravity's network and products accelerate the delivery of media assets to end-users and enables scalable, real-time video communications over the Internet. The company operates nodes in over 25 locations around the globe.

"Tata Communications bet on BitGravity's vision and people to provide innovative video services. We are ecstatic that this will be a positive outcome for all the stakeholders; we are equally excited about what this means for BitGravity and its products going forward," said Perry Wu, CEO and co-founder of BitGravity. "As a combined entity, we can propel our position in the market, and the opportunity to accelerate our vision on a significantly larger scale was one we couldn't pass up." In 2008, Tata Communications entered into a strategic alliance with BitGravity that included the licensing BitGravity’s CDN technology and the federation of BitGravity’s and Tata Communications’ delivery networks. The company also made a strategic investment of $11.5mn in BitGravity.

BitGravity was founded in mid-2006. The company is headed by Perry Wu, who previously was involved in the creation of Xilinx, Mpath, eWorld, Sitesmith, Alibris, and more recently Cloudshield, Enkata, Persist, and WireCache. He has been an investment professional at Accel Partners, Bedrock Capital, and most recently as a General Partner at ComVentures.