Deal was settled at $10 million.
By The American Bazaar Staff
BANGALORE: Indian IT firm Tech Mahindra has acquired a 75% stake in the US-based FixStream Networks, Inc. for $10 million (Rs. 60 crore), in an agreement that was signed on Friday, April 18.
FixStream is a data storage and cloud computing software firm, founded in May of last year. According to its website, the company uses “deep-dive” analytics in the DataCenter and Cloud environments to help organize and store massive amounts of data for large companies. Although barely a year old, FixStream has amassed some impressive clients, including DirecTV and Cisco Systems.
Reports indicate that the acquisition was made so that FixStream can develop new emerging technologies for Tech Mahindra, one of the largest India-based IT companies. This is the company’s second major acquisition of the still-young 2014; just a few months ago, Tech Mahindra bought out the IT solutions branch of BASF, the German chemical giant.
The current deal between Tech Mahindra and FixStream is still subject to regulatory approval, but the Bombay Stock Exchange has been informed of it. It is the latest in a line of Indian IT firms buying up start-up companies in an effort to expand both geographically, as well as in terms of what services they can offer their clients and customers.
Companies in both the US and India have been in the start-up purchasing mood for the last couple of years. Apple, Google, Facebook, and Twitter have all invested in Indian IT firms to boost their presence on the subcontinent, which has seen a huge surge in the number of Internet and mobile device users in the last half-decade. Additionally, smaller firms are also interested in India; this month alone, US companies MSys Technologies and ActMobile Networks bought Clogeny Technologies and Colimetrics Software, respectively.
India is seen as a hotbed of both technological savvy and growing innovation, two things that are arguably the most attractive to IT companies around the world. FixStream also joins a list of young companies working with cloud-based technologies, which has also seen demand rise in a relatively short amount of time.
FixStream was founded by two former Cisco employees of Indian origin: Abhinay Padhye and Sameer Padhye.
1 Comment
Well done tech M and padhye bros..