Synopsis:
Tech Mahindra's acquisition of Orchid Cybertech Services in the Philippines is reported by ICCBizNews. The acquisition marks Tech Mahindra's strategic expansion into the Philippines market and strengthens its presence in the region. The article discusses the implications of this acquisition for Tech Mahindra's global footprint and its capabilities in providing IT services and solutions.
In Tuesday's trading, Tech Mahindra shares remained nearly unchanged. The stock showed a marginal decline of 0.02 percent, trading at Rs 1,309.
On Tuesday, Tech Mahindra revealed its acquisition of a 100 percent stake in Orchid Cybertech Services Inc (OCSI), a customer experience firm located in the Philippines, through its wholly-owned subsidiary. The acquisition was approved by the company's subsidiary, Customer Philippines Inc, on February 20, for a sum of Australian $5 million, as disclosed in a filing.
Tech Mahindra's shares showed minimal movement in Tuesday's trading, experiencing a marginal decrease of 0.02 percent to Rs 1,309. The turnover on the counter amounted to Rs 46.93 lakh, contributing to a market capitalization (m-cap) of Rs 1,27,849.52 crore.
Orchid Cybertech offers customer experience services to TPG Telecom, a company closely associated with Tech Mahindra, employing approximately 2,950 full-time workers. In the fiscal year ending July 31, 2023, OCSI reported a turnover of $37.3 million.
Tech Mahindra stated that the acquisition would bolster its partnership with TPG and enhance customer experience capabilities in the Philippines. "The acquisition of OCSI will facilitate this transition and enable additional revenue generation. Under this arrangement, OCSI, along with its assets and employees, will become part of Tech Mahindra, which will then provide customer support and other services to TPG," the company explained.
OSCI was established on October 15, 2004, and achieved a turnover of US$37.3 million in FY 23, US$34.8 million in FY22, and US$29.9 million in FY21.
