Introduction
On April 19, 2021, Tech Mahindra, a leading provider of digital transformation and business consulting services, made a significant move by acquiring DigitalOnUs, a reputable provider of hybrid cloud and DevOps services based in San Jose, California. This acquisition is set to strengthen Tech Mahindra's portfolio and enhance its offerings in the fast-growing remote working and digital transformation sectors.
About DigitalOnUs
Founded in 2015, DigitalOnUs has established itself as a noted player in the hybrid cloud and DevOps services market. With its core strengths in building scalable and secure cloud environments, the company has been instrumental in helping businesses adopt modern technology practices. The acquisition of DigitalOnUs aligns perfectly with Tech Mahindra's vision to offer a more comprehensive suite of digital transformation services.
Acquisition Details
The transaction for DigitalOnUs was valued at $120 million, which includes a retention bonus and earnout provisions. While Tech Mahindra has not disclosed the exact nature of the deal (whether it is an all-cash transaction or involves the issuance of Tech Mahindra shares), this investment clearly demonstrates the company's commitment to integrating the latest technology solutions with traditional business consulting services.
Strategic Significance
By acquiring DigitalOnUs, Tech Mahindra is in a position to offer more robust and comprehensive services to its clients, particularly those looking to move their operations to a fully digital and cloud-based environment. The addition of DigitalOnUs to its portfolio will help Tech Mahindra:
Increase competitiveness: By enhancing its cloud capabilities, Tech Mahindra can better compete with other players in the digital transformation market. Offer advanced solutions: Tech Mahindra clients can now benefit from a wider range of hybrid cloud and DevOps services, improving their efficiency and cost-effectiveness. Empower remote work: With DigitalOnUs' expertise, Tech Mahindra can provide businesses with the tools and support needed to effectively manage remote working environments.Impact on the Industry
This acquisition has significant implications for the technology and digital transformation industry, particularly in the areas of hybrid cloud and DevOps:
Growth in hybrid cloud: The integration of DigitalOnUs' cloud capabilities with Tech Mahindra's services will drive growth in the hybrid cloud market. Enhanced DevOps practices: Tech Mahindra can now offer more advanced DevOps solutions, helping businesses improve their agility and innovation cycles. Remote working integration: Tech Mahindra can better support businesses in managing their remote workforces, ensuring they remain productive and secure.Conclusion
The acquisition of DigitalOnUs by Tech Mahindra marks a significant step forward in the company's journey to provide end-to-end digital transformation services. As the need for cloud-based solutions and remote working environments continues to grow, Tech Mahindra is well-positioned to leverage this acquisition to stay at the forefront of the digital transformation landscape.
About the Author
Hannah Miller, SEO Specialist at Tech Mahindra, brings a wealth of experience in digital transformation and cloud solutions to her role. She is passionate about staying current with industry trends and leveraging cutting-edge technologies to help businesses achieve their digital transformation goals.