IT services and consulting firm Tech Mahindra, announced on Tuesday, February 20, that it has completed the acquisition of a 100% stake in Orchid Cybertech Services (OCSI) through its wholly-owned subsidiary for a total of $3.27 million.
“We wish to inform that the company through its wholly owned subsidiary viz., Customer Philippines Inc has today i.e. February 20, 2024, at 05:55 am (IST), approved the acquisition of 100 percent equity shares in Orchid Cybertech Services,” Tech Mahindra said in a regulatory filing.
Orchid Cybertech Services, a provider of customer experience solutions, serves TPG Telecom with a workforce comprising approximately 2,950 full-time employees.
For the fiscal year ending on July 31, 2023, the company reported a turnover of $37.3 million. Tech Mahindra, in its filing, emphasized its longstanding partnership with TPG Telecom.
The acquisition of Orchid Cybertech Services (OCSI) is expected to bolster this relationship, facilitating seamless transitions and incremental revenue opportunities.
Under this agreement, OCSI, along with its assets and personnel, will integrate into Tech Mahindra, extending customer support and related services to TPG.
“This deal further strengthens the relationship with TPG and aids in expanding existing customer experience capabilities and business in the Philippines,” it said.
On January 25th, the company posted a notable decline in net profit, plummeting by 60.6 percent to ₹510 crore year-on-year for the third quarter concluding on December 31. This downturn occurred during a typically sluggish quarter, marked by a persistent slowdown in demand across crucial sectors such as hi-tech, telecom, and financial services.
Despite this development, shares of Tech Mahindra Ltd observed a marginal decline of 0.027% in trading on Tuesday, settling at ₹1,309.65 per share. However, the stock has showcased a 1 percent increase year-to-date and has demonstrated a substantial 15 percent gain over the past year.