Pune based information technology (IT) services firm Tech Mahindra will acquire Brainscale, a New Jersey based cloud consulting firm, for $28.8 million (Rs 214 crores) including earnouts, in an all cash transaction, it said in a regulatory filing on Saturday.
The acquisition will strengthen Tech Mahindra’s consulting capabilities in the cloud transformation domain and enable the company to drive the growth of cloud related IT services in the North American market, the company said in a filing with the stock exchanges.
The 100% acquisition will close by August 15, 2021, said the filing.
Founded in 2007 by Phani Tipparaju and Vineet Bhatia, Brainscale has expertise in cloud consulting, enablement, application development and data analytics. The company also has an advanced specialisation for Windows/ SQL, app modernisation, Kubernetes and open source database migration to cloud.
The company which has offices across Canada and Pune and Bengaluru in India apart from the US has a workforce of 120 people. It reported revenues of $10 million for the financial year ended December 31, 2020.
Tech Mahindra has made multiple acquisitions during the year to strengthen existing lines of business. These include the acquisition of Eventus Solutions Group in April for $44 million as part of its business process services (BPS) business and a $120 million acquisition of cloud automation and DevOps services provider DigitalOnUs. In March Tech Mahindra bought 70% stake in Perigord to strengthen its healthcare BPS business.