Business, Information Technology

Tech Mahindra Acquires 100% Stake in US-Based DigitalOnUS for $120 Million

Tech Mahindra Acquires 100% Stake in US-Based DigitalOnUS for $120 Million

Tech Mahindra announced that it has acquired DigitalOnUS, a hybrid cloud and DevOps services provider, for a consideration of $120 million. 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.

The acquired company is headquartered in San Jose, California and reported revenue of $30.6 million, at the end of CY2020. The US-based firm has more than 380 employees.

Vivek Agarwal, President-Corporate Development, BFSI and HLS, Tech Mahindra, said, “The acquisition of DigitalOnUs marks an important milestone in Tech Mahindra’s growth journey, and will further enhance our capability in cloud-native engineering, and better equip us to develop cutting-edge digital solutions for our customers. scaling up near-shore delivery capability, with a majority in Mexico and Canada will be critical to execute digital transformation programs.”

The strategic acquisition will further elevate Tech Mahindra’s position as a partner of choice for hybrid-cloud digital transformation, providing end-to-end transformation and new-age capabilities including enterprise DevOps and cloud-native development technologies, said the company in a statement.

Additionally, Tech Mahindra will leverage DigitalOnUs expertise to build multi-cloud platforms, modernize IT security and unlock the cloud operating model for enterprises to accelerate their cloud modernization journey.

Suri Chawla, Founder and CEO, DigitalOnUs, said, “The acquisition by Tech Mahindra represents an important step in DigitalOnUs’s growth journey as it provides our organization and its people with extensive global reach and customer access to scale and tap into many more significant opportunities. Our team at DigitalOnUs is looking forward to being a part of Tech Mahindra and continuing to offer innovative, agile, and industry-leading services to our current and future customers.”

The acquisition underlines Tech Mahindra’s focus on digital growth, under the NXT.NOW framework, which is focused on leveraging next-generation technologies to deliver disruptive solutions ‘today’, and further enable digital transformation, meet the evolving and dynamic needs of our customers, said the company.

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