IT major Tech Mahindra on Monday said it has acquired DigitalOnUS, a hybrid cloud and DevOps services provider, for USD 120 million (about Rs 898 crore) to augment hybrid-cloud offerings for enterprise customers globally.
Tech Mahindra has acquired 100 per cent stake in the organisation to strengthen cloud-native development, hybrid cloud infrastructure and SRE (Site Reliability Engineering) automation, a statement said.
In a regulatory filing, Tech Mahindra said the total consideration for the deal is "up to USD 120 million including retention bonus and Earnout".
DigitalOnUs is headquartered in San Jose, the US, and has more than 380 employees. For the financial year ending December 31, 2020, its revenue was at USD 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 programs," the filing said.
It added that Tech Mahindra will acquire the Indian subsidiary of DigitalOnUs - DigitalOps Technology - and Tech Mahindra Americas will acquire all the other legal entities of DigitalOnUs.
Suri Chawla, founder and CEO of DigitalOnUs, said the acquisition by Tech Mahindra represents an important step in DigitalOnUs's growth journey as it provides the organization 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 programs...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," Tech Mahindra President- Corporate Development, BFSI and HLS, Vivek Agarwal added.