Indian IT Firms Target Acquisitions in US and Europe
Companies are seeking to acquire firms with up to $60 million in revenue to bolster AI and digital capabilities.
Updated on Oct. 21, 2026 in Business Strategy
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Major Indian IT services firms are actively scouting for acquisitions of US and European businesses generating between $20 million and $60 million in annual revenue. This strategic push aims to secure specialist talent and expanded market reach amidst global digital transformation efforts.
Why it matters
These acquisitions are designed to supplement organic growth and help Indian firms secure roles in large, multi-year AI and digital-transformation projects. By integrating established western businesses, these companies hope to mitigate risks associated with macroeconomic uncertainty.
Indian firms are targeting companies with annual revenue between $20 million and $60 million. This follows significant recent investments, such as the $465 million acquisition of Optimum Healthcare IT and the $700 million purchase of Coastal Cloud.
The players
Tata Consultancy Services
This global IT services and consulting firm is headquartered in India and serves as a major player in the international technology sector.
Infosys
An Indian multinational corporation that provides business consulting, information technology, and outsourcing services.
Datatonic
A data and analytics consultancy that is currently considering a potential stake sale to larger IT services providers.
Mystifly
A Singapore-based travel technology company that is currently the subject of acquisition interest valued at over $100 million.
The details
Acquirers are prioritizing firms that offer strong enterprise relationships and commercial traction to gain a competitive edge in global markets. Entities like Datatonic and Mystifly, the latter of which has received interest in a deal valued over $100 million, are currently being evaluated by potential buyers.
Timeline
May: Infosys completed the acquisition of Optimum Healthcare IT.
December: Tata Consultancy Services acquired Coastal Cloud.
Next two to four quarters: M&A deal volume in the IT services sector is expected to increase.
Market Landscape
This acquisition surge follows the industry-wide shift toward AI-led digital transformation, requiring firms to secure specialized talent to remain competitive. By absorbing western companies, Indian IT giants are effectively accelerating their expansion into sophisticated digital service portfolios.
Corporate clients should expect potential shifts in service provider capabilities and account management as their IT partners integrate new acquisitions. These changes may lead to streamlined access to new AI tools but could also cause temporary organizational adjustments during the transition phases.
The takeaway
These acquisition strategies highlight the necessity for established tech firms to buy rather than build their way into AI expertise. Readers tracking corporate growth should note that mid-sized firms with high-value contracts are currently the most attractive assets in the IT services sector.
Further reading
Learn more about the latest industry trends by visiting the Business Strategy section.
Source note: This article includes information reported by Mint.
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