Tech Mahindra acquires 100% stake in Philippines-based Orchid Cybertech Services

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

The company’s wholly-owned subsidiary, Customer Philippines Inc, approved the 100 per cent stake in OSCI on February 20 for Australian $5 million, the company stated in a filing.

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. Turnover on the counter stood at Rs 46.93 lakh, commanding a market capitalisation (m-cap) of Rs 1,27,849.52 crore.

Orchid Cybertech 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 $37.3 million.

Tech Mahindra said that the deal would strengthen its relationship with TPG and aid in expanding customer experience capabilities 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,” said the company.

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

Also read: Tech Mahindra shares plunge 6% on sharp YoY drop in Q3 profit; details here