New Delhi, Dec. 2 -- Tata Communications and Indian Hotels Company Ltd (IHCL) announced separate acquisition moves, with the former buying a majority stake in US-based AI firm Commotion, and IHCL's subsidiary Roots Corp picking up controlling stakes in two companies that operate hotels under the Clarks brand.
Tata Communications-Commotion, Inc
Digital ecosystem enabler Tata Communications has acquired a 51% majority stake in Los Angeles-headquartered Commotion, Inc. through its wholly-owned subsidiary Tata Communications (Netherlands) BV.
The deal values Commotion at about $25.50 million (Rs 229 crore), with the entire amount paid in cash. Of this, $15.5 million will go towards buying shares from existing founders and investors, while $10 million will be infused as fresh capital into the company.
Commotion provides AI-enabled services, software development, and consultancy in the US, and operates a wholly-owned subsidiary in India. It posted a revenue of $118,750 (around Rs 1.06 crore) for the 12 months ended December 2024.
The acquisition gives Tata Communications an AI orchestration layer, low-latency voice models, and enterprise-ready autonomous agents, which will be integrated into the company's existing suite led by Tata Communications Kaleyra.
The acquisition is expected to expand product capabilities by letting the company anticipate intent and guide multi-step digital interactions in real time, capabilities that were previously split between internal builds and partners.
Indian Hotels-Clarks hotels
Roots Corp Ltd (RCL), a wholly-owned subsidiary of The Indian Hotels Company Ltd, has signed agreements to acquire a 51% stake each in ANK Hotels Pvt Ltd and Pride Hospitality Pvt Ltd.
The move follows IHCL's earlier disclosure in August. The combined cash investment amounts to Rs 190.5 crore, with Rs 109.3 crore for ANK and Rs 81.2 crore as primary equity infusion into Pride.
ANK manages a network of 119 mid-scale hotels under various Clarks Inn brands, with 67 currently operational. It reported audited revenue of Rs 14.32 crore for FY25.
Pride manages 28 hotels, 14 operational, spanning resorts, safaris and collection formats, with audited FY25 revenue of Rs 19 crore.
Following completion, both ANK and Pride will become subsidiaries of RCL and step-down subsidiaries of IHCL.
The combined 140-plus property portfolio is largely operated under The Clarks Hotels & Resorts, with ANK present across India and Sri Lanka, and Pride across India.
Published by HT Digital Content Services with permission from VC Circle.