Tech Mahindra reported $1.47 billion in revenues for the quarter ending September, growth of 6.4 percent on a sequential basis.
IT services firm Tech Mahindra has acquired two companies - US-based Infostar LLC and London-based We Make Websites Limited (WMW), for $105 million and $13 million, respectively to strengthen its digital portfolio.
Infostar LLC is a digital product engineering company that uses the technology platform LodeStone to offer end-to-end product and data quality assurance solutions. The company has more than 300 employees with a revenue of $43.3 million for the year ending December 30, 2020.
WMW offers Shopify-focused e-commerce agency and has 43 employees in the UK and US. The company was acquired for 9.4 million pounds. “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.
Vivek Agarwal, President – BFSI, HLS, and Corporate Development, Tech Mahindra, said during the company's Q2 FY22 results, “With our quarterly results, we've announced two acquisitions. As we have previously articulated, these acquisitions are for building specific capabilities, which are high growth in nature.”
Tech Mahindra Q2 Result: Profit comes in at Rs 1,339 crore, revenue Rs 10,881 crore
Agarwal explained that Lodestone will help large internet companies build their products and technology to provide quality assurance, data quality, product quality, expertise. “The way we look at the entire space is digital engineering. As enterprises transform, we will look at spending a lot of money in investing in new-age products. And this capability that we are bringing in will help us offer a full comprehensive service offering.”
Talking about the acquisition of the second company, Agarwal said that this will strengthen its experience design business. “This gives us a capability in a high growth segment for experience design. Earlier in the quarter, we've done a small tuck in to create some localised capability in the auto industry in Germany, called Beris.”
Tech Mahindra reported $1.47 billion in revenues for the quarter ending September, growth of 6.4 percent on a sequential basis. The company closed $750 million in net new deals. CP Gurnani, CEO & MD, said it was the highest sequential growth in a decade the company had seen.