Rewind 2025: Top tech M&A deals in India

India’s IT services sector closed 2025 on an aggressive M&A streak, marked by a flurry of buyouts across AI engineering, cloud, semiconductors, telecom software, and digital transformation. From Coforge’s $2.35-billion acquisition of Encora to a series of targeted deals by HCLSoftware, TCS, HCLTech, KPIT, Genpact, Virtusa, and others, leading tech firms raced to secure strategic capabilities in AI, data, cloud, and next-gen engineering. Together, these transactions signal a decisive industry pivot toward AI-led growth, full-stack engineering, and deeper global delivery muscle.

Coforge’s $2.35 billion Encora buyout

The Indian IT sector ended the year with an M&A bang when midcap firm Coforge acquired US-based AI engineering services firm Encora. Coforge will buy Encora from private equity investors Advent International and Warburg Pincus in a transaction valued at $2.35 billion, the Noida-headquartered firm said. 

For Coforge, the acquisition significantly accelerates its pivot towards AI-centric growth. The company said AI-led engineering, data and cloud services together are expected to generate about $2 billion in revenue by FY27, out of the combined entity’s projected $2.5-billion topline. Within this, AI-led product engineering is expected to scale into a $1.25-billion-plus business, cloud services to around $500 million and data engineering to more than $250 million.

HCLSoftware acquires Jaspersoft, Wobby

HCL Technologies’ software arm, HCLSoftware, has agreed to acquire Jaspersoft from Cloud Software Group for $240 million in an all-cash deal, as the company sharpens its focus on data, analytics and artificial intelligence-led enterprise software.

The acquisition, expected to close within six months of signing, will see Jaspersoft — a provider of embedded analytics and pixel-perfect reporting tools — become part of HCLSoftware’s Data & AI division, Actian. About 115 employees across geographies will move to HCLSoftware as part of the transaction.
This deal came close on the heels of another acquisition by the firm when it acquired Belgium-based early-stage startup Wobby for about ₹47 crore (€4.5 million). Wobby develops AI data analyst “agents” for data warehouses, designed to help enterprises extract insights faster using GenAI. 

HCLTech acquires HPE Telco Solutions Business

HCLTech signed an agreement to acquire the Telco Solutions business from Hewlett Packard Enterprise (HPE), expanding its enterprise technology capabilities for global communication service providers. The transaction builds on a prior deal completed in 2024, when HCLTech acquired parts of HPE’s Communications Technology Group.

The Telco Solutions unit provides software and platforms that telecom operators use to manage and operate their networks. Its systems support more than one billion devices across over 200 deployments worldwide. The portfolio includes operations support systems, home subscriber server platforms, and 5G subscriber data management. It also provides automation tools that use artificial intelligence to monitor networks and adjust performance in real time.

TCS strengthens Salesforce and Agentic AI capabilities

In October, Tata Consultancy Services (TCS) announced the acquisition of ListEngage, a Salesforce Summit partner based in the United States.
ListEngage is a full-stack Salesforce partner with expertise in Marketing Cloud, CRM, Data Cloud, Agentforce, and AI advisory services for enterprises. The acquisition is expected to strengthen TCS’ Salesforce practice, expanding its specialisations across Salesforce marketing and AI-enabled tools. As part of the deal, over 100 professionals with more than 400 Salesforce certifications will join TCS’ Enterprise Solutions unit in the United States.

Later in December, TCS announced another acquisition, this time again of a Salesforce consulting firm, specialising in enterprise-scale transformations in a deal worth $700 million. With the acquisition of Florida-based Coastal Cloud, TCS aims to further enhance its Salesforce advisory and business consulting capabilities across verticals globally. This acquisition will add over 400 seasoned professionals with more than 3,000 multi-cloud certifications.

Cyient Semiconductors acquires majority stake in Kinetic Tech

In December, Cyient Semiconductors signed a definitive agreement to acquire a majority stake in Kinetic Technologies, a US-based power management and high-performance analogue semiconductor company, for a total consideration of up to $93 million.

Kinetic Technologies, a fabless power management and analogue semiconductor firm headquartered in San Jose, brings deep expertise in power conversion, protection and mixed-signal ICs, with more than 100 patents and long-standing relationships across global OEMs. Its R&D footprint spans Silicon Valley and Asia.

Virtusa acquisition helps build semiconductor portfolio

Product and platform engineering services company Virtusa Corporation bought Bengaluru-based SmartSoC Solutions, a firm specialising in chip engineering and integrated circuit (IC) design services. With this acquisition, Virtusa aims to expand its industry portfolio to include the semiconductor sector. 

With SmartSoC, Virtusa will be completing its full-stack, end-to-end service capabilities, spanning the digital technology ecosystem from the chip to the network, cloud, and application layer. The acquisition also establishes Virtusa’s semiconductor engineering footprint in India and strengthens its global delivery capabilities by integrating SmartSoC’s engineering presence across Bengaluru, Hubli, and Hyderabad, including a significant tier-2 delivery centre in Hubli. Additionally, the move brings more than 1,400 highly skilled engineers with depth in VLSI, physical design, and embedded software.

UST acquires Modus Information Systems

US-based digital transformation firm UST has acquired Modus Information Systems to strengthen its position in the financial sector. Headquartered in Bengaluru, Modus is a core banking implementation firm that services major banks in India and the Global South. The financial details of this deal have not been disclosed.

UST notes that with Modus in its fold, it will be able to meet the growing demand for digital transformation and scalable banking solutions. Further, it will also enhance UST’s banking-as-a-service utility offering BanktrUST, strengthening its global financial services practice.

Capgemini decides to acquire Cloud4C

French IT Services major Capgemini said on Tuesday it has signed an agreement to acquire Cloud4C, a Singapore-based managed cloud services provider owned by CtrlS Group. The company has offices in Navi Mumbai and Hyderabad. Financial details of the transaction were not disclosed.

Founded in 2014 by Sridhar Pinnapureddy, who also heads CtrlS Datacenters and CtrlS Group, Cloud4C has expanded to a workforce of 1,600 employees operating in 29 countries. The firm specialises in automation-driven hybrid and sovereign cloud services, AI-ready platforms, disaster recovery, cybersecurity, and compliance tailored to specific industries. Additionally, it serves as a global premium partner for SAP in S/4 HANA Cloud.

Wipro buys HARMAN’s digital transformation solutions unit

IT services company, Wipro, in August, said it will acquire the Digital Transformation Solutions (DTS) business unit of HARMAN, a provider of ER&D and IT services that is currently part of Samsung, for $375 million, including earn-outs. The deal is expected to be completed by the end of December 2025.

The acquisition will see more than 5,600 DTS employees, including senior leadership across the Americas, Europe and Asia, join Wipro. Once finalised, DTS will be integrated into Wipro’s Engineering Global Business Line.

VVDN acquires Hyderabad-based ER&D service provider

Product and software services provider VVDN Technologies (VVDN) has announced the acquisition of GGS Engineering Services. Hyderabad-based GGS is an engineering solutions company specializing in engineering research and development (ER&D) services for the Automotive, medical technology (MedTech), and Aerospace industries. 

Through this acquisition, the Gurugram-headquartered firm will gain engineering expertise in the areas of mechanical design, analysis, simulation, virtual manufacturing, and technical publications. Beyond talent, VVDN is also expected to gain innovative product development with faster time to market; value-added engineering for cost optimisation, and scalable solutions. 

Hexaware strengthens GCC presence in India

Hexaware Technologies, a global provider of IT solutions and services which went public this year, acquired SMC Squared, a firm that specialises in optimising global workforces for companies. The acquisition is aimed at expanding the company’s presence in India’s rapidly growing Global Capability Centre (GCC) market. GCCs are offshore units established by multinational corporations to perform a range of strategic functions.

Hexaware said that it has signed two separate share purchase agreements to acquire Tech SMC Square India Private and Tech SMC Squared (GCC) India. The acquisition, valued at up to $120 million (nearly ₹1,029 crore), will be an all-cash transaction.

Genpact to boost data services with AI firm XponentL

Genpact has announced the acquisition of XponentL Data, a data products and artificial intelligence (AI) solutions company. The acquisition is intended to deepen Genpact’s capabilities in the areas of data strategy, architecture, engineering, and AI deployment, as the company continues its shift toward a more AI-driven operating model.

XponentL Data, headquartered in Pennsylvania, brings with it various services, including domain-led data design, modern data platform implementation, and strategic industry solutions. The company has established partnerships with major technology providers such as Databricks, Amazon Web Services (AWS), and Microsoft, and has developed training and tools across these platforms. Its portfolio includes proven solutions tailored to industry-specific needs, helping businesses accelerate the deployment of AI for measurable impact.

KPIT to buy engineering solutions arm of Caresoft

Automotive and mobility-focused tech firm KPIT Technologies inked a deal to acquire the engineering solutions division of US-based Caresoft Global for $191 million (₹1,614 crore). The acquisition will involve full ownership of four units: Caresoft Global Technologies, Inc. (USA), Caresoft Engineering Services Limited (UK), CAREGLOTECH de RL de CV (Mexico), and OXI SRL (Italy).

Caresoft Global is into automotive benchmarking and cost-reduction-oriented engineering solutions. As part of the deal, it will restructure the business into benchmarking and engineering solutions units with KPIT acquiring the carved-out Caresoft Engineering solutions business globally that is primarily focused off-highway, truck and bus segments and manufacturing Solutions.