Tech Mahindra completes acquisition of Orchid Cybertech services for $3.27 million
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Tech Mahindra, the IT services and consulting firm, has successfully acquired a 100% stake in Orchid Cybertech Services (OCSI) for a total of $3.27 million.
The acquisition was completed through its wholly-owned subsidiary, Customer Philippines Inc. The regulatory filing from Tech Mahindra on Tuesday, February 20, confirmed the approval of the acquisition.
Orchid Cybertech Services, known for providing customer experience solutions, primarily serves TPG Telecom and employs approximately 2,950 full-time staff.
The company reported a turnover of $37.3 million for the fiscal year ending on July 31, 2023. Tech Mahindra highlighted its longstanding partnership with TPG Telecom and emphasized that the acquisition is expected to strengthen this relationship, fostering seamless transitions and presenting additional revenue opportunities.
As part of the agreement, Orchid Cybertech Services, including its assets and personnel, will integrate into Tech Mahindra.
The acquisition aims to extend customer support and related services to TPG Telecom, further expanding Tech Mahindra’s existing customer experience capabilities in the Philippines.
Despite a 60.6% decline in net profit for the third quarter ending on December 31, 2023, Tech Mahindra’s shares have showcased resilience, observing only a marginal decline of 0.027% in Tuesday’s trading.
The company’s stock has demonstrated a 1% increase year-to-date and a substantial 15% gain over the past year.
The acquisition of Orchid Cybertech Services aligns with Tech Mahindra’s strategic goals, strengthening its position in the customer experience solutions sector and enhancing its business operations in collaboration with TPG Telecom.
