Indian software services company Mphasis Ltd said Thursday it has purchased UK-based data engineering and consulting firm Datalytyx Ltd for £13.3 million ($17.6 million).
The deal also involves the acquisition of Datalytyx units Dynamyx Ltd and Datalytyx MSS Ltd, Mphasis said in a stock-exchange filing.
Mphasis said the acquisition will help it strengthen its next-generation data go-to-market strategy and provide higher value partnership status with American cloud-based data services companies Snowflake and Talend.
The acquisition also provides access to highly skilled data professionals and sales professionals, the company said.
London-based Datalytyx provides next-generation data engineering, data ops and master data management solutions on Snowflake and Talend environments to clients globally. It was founded in 2014, as a merger of Dynamyx Ltd and Managed Service Solutions Ltd.
“Data and analytics combined with artificial intelligence, will continue to play a dominant role to predict, prepare and respond to changing needs of the business,” said Nitin Rakesh, CEO and executive director, Mphasis.
“This acquisition will not only strengthen our next-gen data strategy but will also be a significant milestone in our journey to build capabilities relevant to the digital priorities of our clients,” he said.
This is only the second acquisition by Mphasis since Blackstone, the world’s biggest private equity firm, took control of the company in 2016 in what was its largest deal in India. The Datalytyx deal comes exactly two years after Mphasis bought US-based cloud automation company Stelligent Systems LLC for $25 million (Rs 180 crore) in November 2018.
Blackstone had initially bought a little more than 60% stake in Mphasis. It pared its stake in 2017 and 2018. Earlier this year, it raised as it sought to take advantage of a fall in the company’s stock price. It now owns a 56.16% stake in Mphasis.
Shares of Mphasis had plunged to a multi-year low of Rs 612.05 apiece in March after stock markets crashed due to fears of the coronavirus pandemic. The shares have more than doubled since then, outpacing the broader markets, and closed at Rs 1,300.40 apiece on Thursday on the BSE.