Tech Mahindra announces acquisition of 100% stake in Orchid Cybertech Services

IT services company Tech Mahindra on Tuesday announced that it has acquired 100 per cent stake in Philippines-based customer experience firm, Orchid Cybertech Services Inc (OCSI), through its wholly-owned subsidiary.

“We wish to inform that the company through its wholly owned subsidiary viz., vCustomer Philippines Inc has today i.e. February 20, 2024 at 05:55 a.m. (IST), approved the acquisition of 100 per cent equity shares in Orchid Cybertech Services, Inc, (OCSI) and executed the relevant transaction documents,” it said in a regulatory filing. The cost of acquisition, the company said, is AUD 5 million.

Orchid Cybertech Services provides customer experience related services to TPG Telecom and has about 2,950 full time employees. The turnover of the company for the FY ended on July 31, 2023 was $37.3 million, and the previous financial year turnover was at $34.8 million and it had recorded a turnover of $29.9 million in FY21.

Tech Mahindra has a long standing relationship with TPG Telecom (TPG). This deal, it added, will further strengthen the relationship with TPG and aid in expanding existing customer experience capabilities and business in the Philippines. “Acquisition of OCSI will facilitate this transition 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,” it said.