Tech Mahindra buys cloud consultancy Brainscale
Tech Mahindra, an India-based IT consulting firm, has acquired Brainscale, a Princeton, NJ-based cloud consulting firm.
Founded in 2007, Brainscale provides cloud enablement, migration, analytics, and managed services, with particular expertise in Microsoft Azure. The firm works with small- and medium-sized businesses, as well as Fortune 500s, across various industries.
Brainscale is a Microsoft Gold Partner for cloud platform, application development, and data analytics. The company is also a Google Cloud Partner and an AWS Consulting Partner.
Brainscale has 120 employees across offices in Princeton; Toronto, Canada; and Pune and Bengaluru, India. The firm had revenues of $10 million in 2020.
Tech Mahindra has purchased the firm for $28.8 million in cash, including earnouts, according to a regulatory filing from June 26. The transaction is expected to close on August 15, 2021.
“The acquisition will bolster Tech Mahindra’s consulting capabilities in the Cloud transformation space and will enable Tech Mahindra to drive growth of Cloud related IT services in the North American market,” the filing said.
The pandemic has incited many organizations to accelerate their digitalization, with key areas being cloud and cybersecurity. This has boosted demand for consulting in the areas, and well-capitalized consulting firms have been bolting on specialist firms to scale up relevant capabilities. Rival technology consultancy Accenture went so far as to channel $3 billion into its cloud division over the next three years.
Tech Mahindra earlier this year acquired DigitalOnUS, a San Jose-based firm specializing in hybrid cloud and DevOps services. The $120-million transaction added 380 people across offices in the US, Canada, Mexico, and India.
Based in Pune, Tech Mahindra has approximately 125,000 people in 90 countries. The firm provides a wide range of IT and business process outsourcing services, and has annual revenues of $5.2 billion.
