IT services firm Tech Mahindra (NSE: TECHM) announced it’s acquiring a 13.8% stake in AustinGiS Inc., an IT solutions provider, for USD 1.25 million in cash. The deal is expected to close on 15 September.

AustinGiS specializes in Internet of Things and 5G services. The company was founded just this year.

“The investment will help Tech Mahindra develop new offerings in its loT/SG capabilities by opening up a strong ecosystem of partners with specialisation in SG/loT technology,” Tech Mahindra said.

The acquisition is being done by Tech Mahindra’s subsidiary, viz.