Xoriant buys quality engineering firm TestDevLab to expand its presence

Xoriant, a mid-tier Information Technology (IT) services company has bought TestDevLab, a Latvian company dealing with software quality engineering, to expand its presence in the sector and gain a greater foothold in Europe.

 

The deal, value of which is not disclosed, is Xoriant’s fourth acquisition in the last three years, which include Fexle Services and MapleLabs last year and Thoucentric in 2023.

 

“This acquisition is a little bit downstream from our core digital engineering. As platforms become more and more complex and particularly as AI gets more and more embedded in those platforms, it actually raises the necessity and the bar on quality engineering and quality assurance for these complex platforms. And also this gives a huge boost to our European presence, both as a market as well as a delivery footprint,” Xoriant chief executive officer (CEO) Rohit Kedia said in an interaction.

 

TestDevLab, which has about 500 employees, has its delivery centres in Baltic and Macedonia to strengthen Xoriant’s European presence with access to top engineering talent and EU innovation ecosystems.

 

TestDevLab has revenue of about $30 million and Xoriant’s top line from the continent will triple once the merger is complete, Kedia said. Digital engineering companies like Xoriant – backed by ChrysCapital – usually get maximum revenue from the US with Europe typically being the second largest market.

 

TestDevLab, which counts Orange, Zoom, and Microsoft among its clients, services companies through its quality engineering ecosystem, including A/V UX testing, network simulation, energy-efficiency analysis, along with proprietary tools like Loadero and AI-driven Barko agent.

 

“While this is currently focused on quality engineering, our plans call for expanding that footprint and leveraging it just to access the overall engineering talent from the European ecosystem as well,” Kedia added.

 

Engineering Research and Development (R&D) is the fastest growing segment in the Indian IT industry sector, according to data from Nasscom. It is expected to grow at 7 per cent with revenue of $55 billion in 2025-26. The IT services industry is expected to grow, in comparison, at just 4.3 per cent.

 

Digital engineering also formed two-thirds of large deals in banking, financial services and insurance (BFSI), healthcare and retail.

 

Ervins Grinfelds, co-founder of TestDevLab, said, “Clients today expect trusted partners who ensure excellence from code to customer experience. Xoriant’s scale and applied intelligence approach will amplify our mission to help clients deliver products defined by reliability, performance, and innovation.”