On Monday, Information technology major Mahindra acquired a hybrid cloud, and computing or DevOps service provider DigitalOnUS got about Rs 898 crores ($120 million).
Tech Mahindra took the decision to acquire Digital OnUS raise and augment its hybrid-cloud offerings for enterprise customers across the globe. Tech Mahindra has acquired 100 percent stakes in the organization to strengthen cloud-native development, SRE (Site Reliability Engineering), and hybrid cloud infrastructure, stated in the recent statement.
Additionally, Tech Mahindra said in the regulatory filing that the total consideration for the deal is up to $120 million, which involves retention bonus, and Earnout.
The acquired firm DigitalOnUS is headquartered in San Jose, United States, and has more than 380 employees currently. For FY ending December 31, 2020, its revenue was at $30.6 million.
The filing also added- “The acquisition of DigitalOnUs will enhance Tech Mahindra’s power to operate cloud native engineering, and position it to develop cutting-edge digital sotions for its prospects. The near shore deliervy capability of DigitalOnUs, with the majority of its operations in Mexico. Somewhere, it will be tough to execute digital shift programs”.
The company will also acquire all other legal entities of the digital firm DigitalOnUS.
Lastly, commenting on the acquisition, the CEO and Co-founder of DigitalOnUs Suri Chawla said the Tech Mahindra represents a crucial step in DigitalOnUs’s growth journey as it offers the company and its people with comprehensive global reach and customer passage to scale and tap into many more notable chances.