Indian IT services firm Happiest Minds Technologies Ltd has agreed to acquire a 100% stake in the US-based digital product engineering firm Aureus Tech Systems, LLC.
The deal is expected to be finalized by the end of June this year, with Happiest Minds paying an upfront cash consideration of $8.5 million, the company said in a stock-exchange filing on May 9.
The acquisition will enhance Happiest Minds' domain capabilities in banking, financial services, insurance (BFSI), and healthcare and life sciences verticals, while also granting access to a prestigious group of customers.
Aureus Tech, headquartered in Denver, offers Azure-native digital product engineering services in the insurance, healthcare, and life sciences industries. The firm works with Fortune 500 companies to provide digital and AI-led solutions. It has a team of 150 employees and a development centre in Hyderabad, as per the statement.
Aureus Tech reported turnover of $8.3 million for the calendar year 2023, surpassing the $7 million in 2022 and $5.6 million in 2021.
Joseph Anantharaju, Happiest Minds' executive vice-chairman, said that Aureus strengthens the company’s BFSI and healthcare industry groups, enhances its value proposition in these verticals, and contributes to its customer acquisition initiatives.
“We are excited at the potential to cross-sell and up-sell Infrastructure, Security, Automation, Analytics and GenAI offerings to Aureus’s customers to accelerate Happiest Minds' growth,” he said.
EY served as the exclusive financial advisor to the sellers of Aureus Tech.
This marks the second acquisition by Happiest Minds within a month, following the purchase of Noida-based PureSoftware Technologies Pvt. Ltd on April 25 for up to Rs 779 crore, aimed at bolstering capabilities in the BFSI sector.
On May 7, the Bengaluru-based company reported a 10.4% year-on-year increase in revenue to Rs 417 crore for the fourth quarter, with profits rising by 25% to almost Rs 72 crore. Happiest Minds' revenue grew by 13.7% for the full year.
Apart from Happiest Minds a few other global technology companies have reported acquisitions this week. On Wednesday, ServiceNow announced the acquisition of Intella, an end-to-end talent acquisition solution. Cloud company Akamai Technologies on Tuesday announced a deal to acquire API security firm Noname Security for $450 million. The company said the acquisition of Noname will allow Akamai to “extend protection across all API traffic locations.”
