Tech Mahindra acquires DigitalOnUs to augment hybrid-cloud offerings

The acquisition will strengthen the IT major's cloud native development and near shore delivery from Mexico and Canada for its US customers.

Tech Mahindra announced that it has acquired DigitalOnUS, a leading hybrid cloud and DevOps services provider, to augment hybrid-cloud offerings for enterprise customers globally. Tech Mahindra has acquired 100% stake in the organisation to strengthen cloud-native development, hybrid cloud infrastructure and SRE (Site Reliability Engineering) automation.

Total consideration of the acquisition is upto $120 million including retention bonus and earnout. The transaction is expected to close by 15 May 2021.

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.

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.

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.

The IT major's consolidated net profit jumped 21.35% to Rs 1,290.10 crore on 2.93% rise in net sales to Rs 9,647.10 crore in Q3 December 2020 over Q2 September 2020.

Tech Mahindra is engaged in the business of computer programming, consultancy and related services.

Shares of Tech Mahindra fell 0.67% to Rs 994.10 on BSE. The scrip hovered around Rs 993.05 to Rs 1007.90 so far.

Powered by Capital Market - Live News