Tech Mahindra acquires DigitalOnUS for $120 million
IT major, Tech Mahindra has announced that it has acquired DigitalOnUS, a hybrid cloud and DevOps service provider in an all-cash deal for $120 million (Rs 897 crore).
The company looks to boost its hybrid-cloud offerings for enterprise customers globally.
Tech Mahindra has acquired 100 per cent stake in the organisation to strengthen cloud-native development, hybrid cloud infrastructure, and SRE (Site Reliability Engineering) automation, a statement said.
In a regulatory filing, Tech Mahindra said the total consideration for the deal is “up to USD 120 million including retention bonus and Earnout”.
DigitalOnUs is headquartered in San Jose, the US, and has more than 380 employees. For the financial year ending December 31, 2020, its revenue was at USD 30.6 million.
Tech Mahindra, which provides services in fields ranging from data analytics to cybersecurity to artificial intelligence, has been extensively focussing on expanding its digital platform as more companies turn to virtual in the pandemic.
In January, Tech Mahindra signed a professional services agreement with Fidelity Information Services, in an attempt to expand its footprint in the BFSI (banking, financial services, and insurance) sector.