Indian IT major, Tech Mahindra has announced to acquire a digital engineering quality assurance provider Lodestone to strengthen its new-age digital portfolio. According to top industry sources, the deal is estimated to be around $105 million (about Rs 789 crore).
The Mumbai-based company in a regulatory filing also announced to acquire WMW by Born London Limited, UK for 9.4 million pounds (about Rs 97 crore).
Tech Mahindra said the acquisition of Infostar LLC (doing business as Lodestone) will bolster its end-to-end digital product engineering capability across Design, Build, and Test, by employing Loadstone’s expertise in effective utilisation of data strategy and providing end-to-end product quality assurance across hardware, software, and data layers.
Tech Mahindra will pay total consideration of up to USD 105 million, including earnouts, it added. The company is headquartered in Pleasanton, California, and has more than 300 employees.
For the financial year ending December 31, 2020, the company had revenue of $43.3 million. Tech Mahindra President (BFSI, HLS, and Corporate Development) Vivek Agarwal said the acquisition of Lodestone is in line with the company’s strategy to strengthen digital capabilities and provide enhanced and comprehensive transformation services to its customers globally.
“This will bring significant synergies to complement our domain expertise and will help drive growth going forward. We welcome Lodestone’s associates into the Tech Mahindra family,” Agarwal said.
The acquisition of We Make Websites Ltd (WMW) will add to Tech Mahindra’s capabilities in the Experience Design pillar and help build an industry-leading Shopify Practice, the regulatory filing noted.
The London-headquartered company logged revenue of 4.6 million pounds in CY2020. The UK accounted for 51 percent of revenue, the US (30 percent), and other regions 19%. It had 43 employees in the UK and five in the US.