Tech Mahindra Limited, a leading provider of digital transformation, consulting, and business re-engineering services and solutions, on Tuesday, announced that it has acquired DigitalOnUS for USD 120 million, to augment hybrid-cloud offerings for enterprise customers globally.

As industry moves more to hybrid cloud, Tech Mahindra believes the acquisition will bolster its services in this area. DigitalOnUs, headquartered in San Jose, U.S., specialises in hybrid cloud and DevOps services.

The acquisition of DigitalOnUs, which offers cloud engineering and hybrid automation services, will help Tech Mahindra develop cutting-edge solutions and bolster its digital offerings.

DigitalOnUs is majorly present in Mexico and it will be critical to executing digital transformation programmes, Tech Mahindra said in a release. The cash consideration includes retention bonus and earnouts, and Tech Mahindra expects to close the transaction by May 15 as all the necessary statutory approvals have been received.

As part of the deal, Tech Mahindra will acquire the Indian subsidiary of DigitalOnUs--DigitalOps Technology Pvt Ltd--while Tech Mahindra Americas will acquire all the other legal entities of DigitalOnUs.

Shares of Tech Mahindra Ltd on Tuesday closed in NSE at Rs.980.90 as compared to the previous close of Rs. 1010.10. The total traded volume of shares during the day was 40,28,636.

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