Indian IT firms eye global AI acquisitions in major overseas push

Acquisition Push

Top and mid-sized Indian IT services firms are hunting for overseas targets with annual revenues between $20 million and $60 million. These companies are focusing on the US, the UK, and Western Europe to boost their skills in data analytics and artificial intelligence. Deals carrying valuations between $100 million and $200 million are also currently underway in the market.

Specific Targets

London-based cloud data and AI consultancy Datatonic is considering a stake sale and has drawn interest from international firms, including major Indian IT services companies. The business is exploring both minority and majority stake sales, though talks are still preliminary. Meanwhile, Singapore-based platform firm Mystifly has received interest for a deal expected to value it at more than $100 million. Some domestic tech firms have expressed interest specifically in the technology stack built by Mystifly. Queries sent to both Datatonic and Mystifly went unanswered before publication.

Industry Context

Sonia Dasgupta, managing director and chief executive officer for investment banking at JM Financial Ltd, noted a clear rise in outbound mergers and acquisitions by Indian IT firms centered on data, AI, and engineering. Recent major buyouts include Tata Consultancy Services buying Coastal Cloud for $700 million in December and Infosys completing its acquisition of Optimum Healthcare IT for up to $465 million in May. Abhishek, partner and TMT deals industry leader at PwC India, said buyers want to secure new clients, niche capabilities, and greater market penetration, with the US remaining a key focus market despite a shortage of quality assets. Shivani Nagpaul, partner for investment banking and technology at EY India, added that well-capitalized strategic buyers are pursuing larger transactions to gain scale and access to digital-transformation budgets.

Context

Indian IT firms have traditionally grown by hiring large numbers of workers, but slower organic growth and the rise of artificial intelligence have changed how they expand. Buying established overseas companies lets these firms instantly acquire specialized engineering talent, proprietary technology, and direct relationships with international clients. This strategy helps them compete more effectively for massive, multi-year digital transformation projects globally.