Tech Mahindra to acquire hybrid cloud and DevOps firm DigitalOnUS for $120m
Tech Mahindra has agreed to acquire DigitalOnUS, a California-based hybrid cloud and DevOps services provider, for up to $120 million in cash.
The consideration includes retention bonus and earnout.
The acquisition will bolster its cloud-native development, hybrid cloud infrastructure and Site Reliability Engineering (SRE) automation, said Tech Mahindra.
DigitalOnUS, which has a workforce of over 380 people, had reported revenue of $30m in 2020.
Commenting on Tech Mahindra acquisition of DigitalOnUS, 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 majority in Mexico and Canada will be critical to execute digital transformation programs. We welcome the associates of DigitalOnUs into the Tech Mahindra family, and look forward to achieving great success together.”
Tech Mahindra said that the acquisition will elevate its position further as a partner of choice for hybrid-cloud digital transformation in offering end-to-end transformation and new-age capabilities, which include enterprise DevOps and cloud native development technologies.
Apart from that, the Indian IT services provider will utilize the expertise of DigitalOnUs in building multi-cloud platforms, and modernizing IT security, besides unlocking the cloud operating model for enterprises to fast track their cloud modernization journey.
Suri Chawla – Founder and CEO of DigitalOnUs, commenting on Tech Mahindra acquisition of 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 is expected to be completed mid-May.