Indian IT major Tech Mahindra has acquired US-based cloud consulting firm Brainscale Inc in an apparent move aimed at capitalizing on the demand for cloud application development services.
Princeton, New Jersey-based Brainscale provides data analytics, application development services, in addition to cloud consulting.
The company reported US$10 million in revenue for the financial year ending on the 31st of December, 2020.
Partly due to the COVID-19 pandemic and the need for digital transformation, the demand for cloud computing is growing like never before.
Tech Mahindra claims to have paid US$28 million for the cloud consultant, which employs around 120 people. Besides New Jersey, the cloud consultant runs offices in Canada as well as India.
The transaction is expected to be closed by August 15, 2021, according to the company’s filing with the Bombay Stock Exchange. The acquisition will help “drive the growth of Cloud-related IT services in the North American market,” stated the IT firm.
Founded in 2007 by Indian Americans Phani Tipparaju and Vineet Bhatia, Brainscale claims to be specialized in migrating data to the cloud.
For Tech Mahindra, this is the fourth major acquisition this year and second investment in cloud space after paying US$120 million for the purchase of cloud automation and DevOps services provider DigitalOnUs.
Earlier in March, the Pune, India-based IT provider bought a 70% stake in Perigord, and a month later acquired Eventus Solutions Group for US$44 million.