New Delhi, May 9 -- Indian IT services firm Happiest Minds Technologies is set to acquire a 100% stake in the US-based digital product engineering firm Aureus Tech Systems, as stated in an exchange filing on May 9. The deal is expected to be finalised by the end of June, with Happiest Minds paying an upfront cash consideration of $8.5 million.
The acquisition will enhance Happiest Minds' domain capabilities in banking, financial services and insurance (BFSI), and healthcare and life sciences verticals, while also granting access to a prestigious group of customers.
Aureus Tech, headquartered in Denver, offers Azure native digital product engineering services in the insurance, healthcare, and life sciences industries. The firm engages regularly with Fortune 500 companies to provide digital and AI-led solutions, boasting a team of 150 employees and a development centre in Hyderabad, as per the statement.
Aureus Tech also reported a turnover of $8.3 million for the calendar year 2023, surpassing the $7 million from 2022 and $5.6 million from 2021.
Joseph Anantharaju, Happiest Minds' executive vice-chairman, informed that Aureus strengthens our BFSI and Healthcare Industry Groups, enhances its value proposition in these verticals and contributes to our new customer acquisition initiatives.
"We are excited at the potential to cross-sell and up-sell Infrastructure, Security, Automation, Analytics and Gen AI offerings to Aureus' customers to accelerate Happiest Minds' growth," he said.
EY served as the exclusive financial advisor to the sellers of Aureus Tech Systems, LLC.
This marks the second acquisition by Happiest Minds within a month, following the purchase of Noida-based PureSoftware Technologies Pvt. Ltd. on April 25 for up to Rs.779 crore, aimed at bolstering capabilities in the BFSI sector.
On May 7, the Bengaluru-based company reported a 10.4% year-on-year revenue increase to Rs.417 crore for the fourth quarter, with profits rising by nearly 25% to almost Rs.72 crore. Happiest Minds' revenue grew by 13.7% for the full year.
Not just Happiest Minds, but other global technology companies reported acquisitions this week. On Wednesday, ServiceNow announced the acquisition of Intella, an end-to-end talent acquisition solution. Developed by Advance Solutions Corp., a ServiceNow Elite Partner, Intella simplifies talent acquisition and accelerates every stage of the recruitment journey.
Cloud company Akamai Technologies on Tuesday also announced a deal to acquire API security firm Noname Security for $450 million. The company said the acquisition of Noname will allow Akamai to "extend protection across all API traffic locations."
Published by HT Digital Content Services with permission from TechCircle.