The acquisition will bolster Tech Mahindra’s digital engineering capabilities to effectively utilize data strategy and address machine learning challenges
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Pune-based IT services major Tech Mahindra Ltd said on Monday it has acquired two companies – US-based Infostar LLC (Lodestone) and London-based We Make Websites Ltd (WMW), for $105 million and 9.4 million pounds (approx. $13 million) respectively to strengthen its digital portfolio.
Lodestone is a leading digital engineering quality assurance provider for new age digital companies. The company has more than 300 employees and generated revenue of $43.3 million for the year ending 30 December, 2020.
“The acquisition will bolster Tech Mahindra’s digital engineering capabilities to effectively utilize data strategy and address machine learning challenges. The strategic announcement will further enhance Tech Mahindra’s capability to provide end -to-end product quality assurance across hardware, software, and data layers to strengthen the company’s positioning as a leading digital transformation enabler in the engineering space," the company said in a statement.
“The acquisition of Lodestone is in line with our strategy to strengthen digital capabilities and provide enhanced and comprehensive transformation services to our customers globally. This will bring significant synergies to complement our domain expertise and will help drive growth going forward," said Vivek Agarwal, president – BFSI, HLS and Corporate Development, Tech Mahindra.
WMW is focused on website building and migration services on the Shopify Plus platform and has 43 employees in the UK and US. “We Make Websites will add to Tech Mahindra’s capabilities in Experience Design pillar and help build an industry-leading Shopify Practice," Tech Mahindra said in a statement.
Tech Mahindra reported $1.47 billion in revenues for the second quarter ended September, up 6.4% on a sequential basis. The company closed net new deals worth a total contract value of $750 million. “As we record our highest sequential growth in a decade, we remain committed to deliver long-term sustainable and profitable growth for the company. We have witnessed strong traction across all key markets as we invest in our digital capabilities through strategic partnerships," said C.P. Gurnani, managing director and chief executive officer, Tech Mahindra.