Tech Mahindra, the IT services and consulting firm, announced on Tuesday, February 20, that it has finalized the acquisition of a 100% stake in Orchid Cybertech Services (OCSI) via its wholly-owned subsidiary for a total of $3.27 million. In a regulatory filing, Tech Mahindra announced that its wholly-owned subsidiary, Customer Philippines Inc., has approved the acquisition of 100 percent equity shares in Orchid Cybertech Services on February 20, 2024, at 05:55 am (IST).
Orchid Cybertech Services, known for its customer experience solutions, serves TPG Telecom and boasts a workforce of around 2,950 full-time employees. In its filing, Tech Mahindra highlighted its enduring partnership with TPG Telecom. For the fiscal year ending on July 31, 2023, Orchid Cybertech Services reported a turnover of $37.3 million.
The acquisition of Orchid Cybertech Services (OCSI) is anticipated to strengthen this relationship, enabling smooth transitions and creating additional revenue opportunities. Under this agreement, Orchid Cybertech Services (OCSI), along with its assets and personnel, will merge into Tech Mahindra, expanding its capability to provide customer support and related services to TPG.
This deal enhances our partnership with TPG and supports the expansion of our current customer experience capabilities and operations in the Philippines, the statement read. On January 25th, the company reported a significant decrease in net profit, dropping by 60.6 percent to ₹510 crore year-on-year for the third quarter ending on December 31. This decline occurred during a traditionally slow quarter, characterized by a continued slowdown in demand across key sectors such as hi-tech, telecom, and financial services.
Despite this development, the shares of Tech Mahindra Ltd experienced a slight decrease of 0.027% in trading on Tuesday, closing at ₹1,309.65 per share. Nevertheless, the stock has shown a 1 percent increase year-to-date and has recorded a notable 15 percent gain over the past year.
