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Tech Mahindra acquires DigitalOnUs

Tech Mahindra Acquires Devops Service Provider DigitalOnUs for $120 million

Tech Mahindra, a global IT conglomerate based in Prune, India, this week acquired San Jose, California-based devops and hybrid cloud service provider DigitalOnUs for $120 million. DigitalOnUs has operations in India, Canada, and Mexico, which have been included in the merger.

The Numbers Are In

In a prepared statement, Tech Mahindra reported that DigitalOnUs has 380 employees with an annual revenue of $30.6 million ($80,526 per employee).

With a $120 million purchase price, Tech Mahindra paid close to 4-times trailing revenue for DigitalOnUs. Getting 4x revenue on a company sale is not exactly SaaS startup multiples, but it is a nice outcome for a founder in a services business.

Devops M&A and Growth Will Continue

Salesforce devops is about to experience some of the churn we are seeing in the open-source devops world. Funding and merger announcements in Salesforce devops will continue as founders and independent software vendors make their moves.

Just like how Tech Mahindra acquired DigitalOnUs, we should expect other global organizations to acquire smaller consultancies who specialize in Salesforce devops throughout 2021 and into 2022.

Vern’s Salesforce Devops Posts

About Vernon Keenan

Vernon Keenan headshot

Vernon Keenan (LinkedIn) works as a senior information technology industry consultant based in Oakland, California.

He earned his B.Sc. in Biomedical Engineering at Northwestern University where he programmed a PDP-8 with punched paper tape.

In his 34-year-long career he has been a teacher, SPSS programmer, database administrator, clinical researcher, technology journalist, product marketing manager, market researcher, management consultant, and industry analyst. Most recently he is a telecom operator, cloud architect, Go devops engineer and Salesforce Developer/Architect.

For inquiries about Salesforce strategy briefings or solution architect work please contact Vern directly at +1-510-679-1900 or [email protected].