New Delhi, March 5 -- Software services company Coforge Ltd said Wednesday it has signed deals to acquire two technology services providers in the US and Australia.

The company will acquire US-based Rythmos Inc., which has offices in Hyderabad and Coimbatore, in an all-cash deal totalling a maximum of $48.7 million (Rs 424 crore), Mumbai-listed Coforge said in a stock-exchange filing.

The acquisition of Rythmos will entail an initial upfront payment of $30 million, subject to certain terms. Coforge will also pay an earn-out amount to shareholders of Rythmos in two tranches, based on the achievement of certain revenue and EBITDA targets for 2025 and 2026. The maximum additional payout will be $18.7 million.

Rythmos was founded in 2007 and majorly operates in the US and India. It recorded revenue of $25.3 million for 2024, up from $24.4 million and $22.6 million in the previous two years, respectively.

Coforge said that it is focusing on enhancing its data practice and cloud engineering capabilities and that the acquisition of Rythmos will add data capabilities along with strong industry knowledge in the airlines industry.

Separately. Coforge's Australian subsidiary will acquire Australian company TMLabs Pty Ltd for an initial payment of A$20 million (about Rs 109 crore). The TMLabs acquisition is expected to be completed by March 31 this year.

An additional earn-out amount will be paid to TMLabs shareholders based on the achievement of certain revenue and EBITDA targets for FY26 and FY27 (ending June), Coforge said, without disclosing the amount.

Founded in 2013, TMLabs is an independent cloud software consultancy firm. It operates majorly in Australia. It recorded revenue of A$11.0 million for FY24, up from A$10.6 million and A$7 million in the previous two years.

Coforge said it intends to enhance its capabilities in the cloud-based ServiceNow ecosystem in newer modules like integrated risk management, healthcare and HR service delivery, and that TMLabs operate at the intersection of these focus areas.

Coforge has been in operation for more than 40 years. It has more than 260 global clients and a workforce of more than 32,000 people worldwide. It was earlier known as NIIT Technologies Ltd and was majority-owned by Baring Private Equity Asia. The PE investor, which was itself acquired by Swedish buyout firm EQT in 2022, exited Coforge in 2023.

Published by HT Digital Content Services with permission from VC Circle.