On Tuesday, February 20, IT services and consulting firm Tech Mahindra finalized the acquisition of Orchid Cybertech Services (OCSI), purchasing a 100% stake in the company through its wholly-owned subsidiary for a total of $3.27 million (₹24.75 crores). This move marks a significant step for Tech Mahindra in expanding its service offerings and strengthening its partnership with TPG Telecom.
Acquisition Approval
- Tech Mahindra announced the acquisition in a regulatory filing, stating that its subsidiary, Customer Philippines Inc, had approved the acquisition of 100 percent equity shares in Orchid Cybertech Services.
- The acquisition underscores Tech Mahindra’s commitment to enhancing its customer experience solutions and extending its reach in the Philippines market.
Overview of Orchid Cybertech Services
- Orchid Cybertech Services specializes in providing customer experience solutions and currently serves TPG Telecom with a workforce of approximately 2,950 full-time employees.
- With a reported turnover of $37.3 million for the fiscal year ending on July 31, 2023, Orchid Cybertech Services brings valuable expertise and resources to Tech Mahindra’s portfolio.
Strengthening Partnerships
- Tech Mahindra emphasized its longstanding partnership with TPG Telecom and highlighted the strategic importance of the acquisition in bolstering this relationship.
- By integrating Orchid Cybertech Services into its operations, Tech Mahindra aims to facilitate seamless transitions and unlock incremental revenue opportunities for both companies.
Integration Process
- As per the agreement, Orchid Cybertech Services, along with its assets and personnel, will be integrated into Tech Mahindra.
- This integration will enable Tech Mahindra to extend its customer support and related services to TPG Telecom, further enhancing its capabilities in the customer experience domain.
Enhancing Customer Experience and Partnerships
- Tech Mahindra’s acquisition of Orchid Cybertech Services signifies a strategic move to expand its customer experience capabilities and strengthen its partnership with TPG Telecom.
- With a focus on seamless integration and leveraging synergies, Tech Mahindra aims to drive growth and deliver enhanced value to its stakeholders amidst a challenging business environment.