IT developer Tech Mahindra has acquired U.S. based DigitalOnUS, a cloud and development operations service provider, in a deal worth $120 million.
Tech Mahindra bought DigitalOnUS (DOU) in an effort to improve cloud infrastructure and make further strides into Site Reliability Engineering (SRE) automation. The $120 million investment buys Tech Mahindra a 100% stake in DOU, which includes a retention bonus and Earnout according to a statement released from Tech Mahindra.
DOU is run out of San Jose, California and currently employees over 380 individuals. In 2020, the company posted revenue earnings of $30.6 million.
The deal also included the procurement of DOU’s Indian subsidiary group, DigitalOps Technology, with Tech Mahindra America acquiring all DOU holdings in the continental U.S..
Suri Chawla, DOU’s founder and CEO, said that the deal with Tech Mahindra was the first step in brining DOU onto a global stage and to tap into international opportunities. Next steps for DOU include “shoring up” delivery capability with Canada and Mexico, critical requirements for their “digital transformation programs” according to the statement.
© Fourth Estate® — All Rights Reserved.
This material may not be published, broadcast, rewritten or redistributed.