Tech Mahindra 100% Acquisition of Orchid Cybertech for $3.27M

Tech Mahindra 100% Acquisition of Orchid Cybertech for -3.27M

Tech Mahindra, one of the leading IT services companies in India, has announced that it has acquired 100% stake in Orchid Cybertech Services Inc (OCSI), a Philippines-based customer experience firm, for USD 3.27 million (over Rs 27 crore) in an all-cash deal. The acquisition will strengthen Tech Mahindra’s relationship with TPG Telecom, a major Australian telecommunications company, and enhance its customer experience capabilities in the Philippines.

OCSI provides customer experience-related services to TPG Telecom, with which Tech Mahindra works closely, and has about 2,950 full-time employees. The turnover of OCSI for the fiscal year ended on July 31, 2023 was USD 37.3 million. Tech Mahindra said that the deal would facilitate the transition of TPG Telecom’s customer support operations to Tech Mahindra and enable incremental revenue to be realized.

“As part of this transaction OCSI, including its assets and employees, will become part of Tech Mahindra and Tech Mahindra will provide customer support and other services to TPG,” said the company in a regulatory filing.

OCSI was incorporated on October 15, 2004, and recorded turnover of USD 37.3 million in FY 23, USD 34.8 million in FY22 and USD 29.9 million in FY21.

Tech Mahindra shares were last seen trading almost flat in Tuesday’s deals. The stock was trading 0.02 per cent down at Rs 1,309.

The acquisition is expected to be completed by March 31, 2024, subject to regulatory approvals and customary closing conditions.

Tech Mahindra also announced a strategic partnership with TOTSCo (The One Touch Switching Company Ltd) to design, build and operate a message exchange platform for the UK telecom industry. The platform will be used by all UK retail communications service providers to enable the new one-touch switch process for residential fixed broadband and voice services.

“The platform is built with a cloud-native architecture that ensures security, robustness, and scalability,” the company said in a statement.

This will allow consumers to switch telecom service providers seamlessly and take advantage of the range of services available. Easier switching allows end-users to choose the best price and service as per their requirements.

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