Tech Mahindra acquires hybrid cloud and DevOps services provider DigitalOnUs for $120M
IT major Tech Mahindra on Monday said it had acquired DigitalOnUS, a hybrid cloud and DevOps services provider, for $ 120 million (about Rs 898 crore) to augment hybrid-cloud offerings for enterprise customers globally.
Tech Mahindra had acquired 100 percent stake in the organisation to strengthen cloud-native development, hybrid cloud infrastructure and Site Reliability Engineering (SRE) automation, a statement said.
In a regulatory filing, Tech Mahindra said the total consideration for the deal was "up to $ 120 million, including retention bonus and earnout".
DigitalOnUs is headquartered in San Jose, US, and has more than 380 employees. For the financial year ending December 31, 2020, its revenue was at $30.6 million.
"The acquisition of DigitalOnUs will enhance Tech Mahindra's capability in cloud-native engineering, and position it to develop cutting-edge digital solutions for its customers. The near-shore delivery capability of DigitalOnUs, with the majority of its presence in Mexico, will be critical to execute digital transformation programmes," the filing said.
It added that Tech Mahindra would acquire the Indian subsidiary of DigitalOnUs - DigitalOps Technology - and Tech Mahindra Americas would acquire all the other legal entities of DigitalOnUs.
Suri Chawla, Founder and CEO of DigitalOnUs, said the acquisition by Tech Mahindra represented an important step in DigitalOnUs's growth journey as it provided the organisation and its people with "extensive global reach and customer access to scale and tap into many more significant opportunities".
"Scaling up near-shore delivery capability, with majority in Mexico and Canada, will be critical to execute digital transformation programmes. We are also looking forward to have Suri play a key role as part of our North America's leadership team to further drive digital transformation journey of our customers," said Tech Mahindra President- Corporate Development, BFSI and HLS, Vivek Agarwal.