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TechM to acqiuire 100% stake in Orchid Cybertech for AUD 5 mn

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Last Updated : Feb 20 2024 | 9:50 AM IST

Tech Mahindra (TechM) said that the company through its wholly owned subsidiary viz., vCustomer Philippines Inc. will acquire 100% equity shares in Philippines-based Orchid Cybertech Services, Inc., for a cash consideration of AUD 5 million.

Orchid Cybertech Services Inc. (OCSI) provides customer experience related services to TPG Telecom. It has about 2,950 full time employees. The turnover of OCSI for the FY ended on 31 July 2023 was USD 37.3 million.

Tech Mahindra has long standing relationship with TPG Telecom (TPG). This deal further strengthens the relationship with TPG and aids in expanding existing customer experience capabilities and business 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, the IT major said it in a statement.

Tech Mahindra is focused on leveraging next-generation technologies including 5G, blockchain, cybersecurity, artificial intelligence, and more, to enable end-to-end digital transformation for global customers.

The IT major's consolidated net profit dropped 60.64% to Rs 510.4 crore in Q3 FY24 as compared to Rs 1,296.6 crore reported in Q3 FY23. Revenue from operations declined 4.61% year on year to Rs 13,101.3 in the quarter ended 31 December 2023.

The scrip rose 0.15% to currently trade at Rs 1311.20 on the BSE.

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First Published: Feb 20 2024 | 9:29 AM IST

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