- Tech Mahindra has finished all the legal documentation required to be done for the acquisition of DigitalOnUS.
- DigitalOnUs is headquartered in San Jose, the US, and has more than 380 employees. Its revenue for the fiscal year ending December 31, 2020, was $30.6 million.
- The acquisition of DigitalOnUs will strengthen its cloud-native innovation capabilities and position it to develop cutting-edge digital solutions for its customers.
Tech Mahindra announced on Monday that it has acquired DigitalOnUS, a hybrid cloud, and DevOps services provider, for $120 million (roughly Rs. 898 crores) to expand its hybrid-cloud offerings for enterprise customers around the world.
According to a statement, Tech Mahindra has purchased a 100 percent stake in the company to strengthen cloud-native growth, hybrid cloud infrastructure, and SRE (Site Reliability Engineering) automation. Tech Mahindra said in a regulatory filing that the deal's overall valuation is "up to $120 million including retention bonus and Earnout."
DigitalOnUs is based in San Jose, California, and employs over 380 people. Its revenue for the fiscal year ending December 31, 2020, was $30.6 million.
"Tech Mahindra's acquisition of DigitalOnUs will strengthen its cloud-native innovation capabilities and position it to create cutting-edge digital technologies for its customers. DigitalOnUs' near-shore distribution capability, which is based in Mexico for the most part, will be crucial in executing digital transformation programs "According to the filing.
Tech Mahindra will buy DigitalOnUs' Indian subsidiary, DigitalOps Technology, and Tech Mahindra Americas will buy all of DigitalOnUs' other legal entities, according to the statement. The acquisition by Tech Mahindra, according to Suri Chawla, founder, and CEO of DigitalOnUs is a significant phase in the company's growth trajectory because it provides the company with resources and its people with extensive global reach and customer access to scale and tap into many more significant opportunities.
“To conduct digital transformation projects, scaling up near shore distribution capacity, with the majority in Mexico and Canada, would be crucial... Suri will also play a crucial role as part of Tech Mahindra's North American leadership team, helping to push our customers' digital transformation journeys, according to Vivek Agarwal, President- Corporate Development, BFSI, and HLS at Tech Mahindra.