Tech Mahindra acquires 100% stake in US-based DigitalOnUS for $120 million

The acquired company is headquartered in San Jose, California and reported revenue of $30.6 million, at the end of CY2020

Topics

Tech Mahindra | IT companies | Cloud computing


BS Reporter  | 
Mumbai 

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.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor