Tech Mahindra has recently acquired the entire stake in the US-headquartered hybrid cloud and DevOps services provider DigitalOnUS for the sum of $120 million, for strengthening its cloud-native development, hybrid cloud infrastructure, and site reliability engineering automation.

Based out of California, DigitalOnUS has employees greater than 380 and for the FY ending December 31, 2020, the company had revenue of $30.6 million. This transaction is expected to close by May 15. Vivek Agarwal, President - Corporate Development, BFSI and HLS, Tech Mahindra, stated that the acquisition of DigitalOnUs signifies an important milestone in Tech Mahindra’s growth journey, and will further improve the company’s capability in cloud-native engineering. It will equip them favorably for developing cutting-edge digital solutions for our customers. Also, it will scale up nearshore delivery capability with the majority in Mexico and Canada will be critical to executing digital transformation programs. The acquisition is expected to advance 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.

Tech Mahindra will leverage DigitalOnUs' expertise to develop multi-cloud platforms, modernize IT security and open the cloud operating model for enterprises to accelerate their cloud modernization venture. Tech Mahindra will acquire the Indian subsidiary of DigitalOnUs'  DigitalOps Technology Pvt Ltd. whereas Tech Mahindra Americas will acquire all of the other legal entities of DigitalOnUs.