New Delhi: Tech Mahindra, a prominent IT services and consulting firm, has finalized the acquisition of Orchid Cybertech Services (OCSI) for a sum of $3.27 million, securing a full 100% stake in the company through its wholly-owned subsidiary. This strategic move is poised to significantly augment Tech Mahindra’s capabilities and market presence, particularly in the domain of customer experience solutions. OCSI, renowned for its adept workforce comprising approximately 2,950 full-time employees, has established itself as a key player in the industry, catering notably to TPG Telecom.
The synergies between Tech Mahindra and OCSI are expected to unlock a host of benefits, not least of which is the reinforcement of Tech Mahindra’s longstanding partnership with TPG Telecom. This acquisition is anticipated to pave the way for seamless transitions and open up incremental revenue streams for Tech Mahindra, leveraging the combined expertise and resources of both entities. With OCSI’s impressive turnover of $37.3 million for the fiscal year ending July 31, 2023, the acquisition marks a strategic investment aimed at capitalizing on the burgeoning demand for customer-centric solutions in today’s competitive landscape.
In a regulatory filing, Tech Mahindra underscored the significance of this acquisition, emphasizing its commitment to expanding its customer experience capabilities and business footprint in the Philippines, where OCSI operates. By integrating OCSI’s assets and personnel into its fold, Tech Mahindra aims to enhance its service offerings and deliver unparalleled value to its clientele, particularly TPG Telecom.
Despite facing a challenging third quarter ending on December 31, characterized by a notable 60.6% decline in net profit, Tech Mahindra’s resilience remains evident in its steady performance. While the quarter witnessed a slowdown in demand across critical sectors such as hi-tech, telecom, and financial services, Tech Mahindra’s shares experienced only a marginal decline in trading on the back of this announcement. Notably, the stock has demonstrated a 1% increase year-to-date, reflecting investor confidence in the company’s long-term growth prospects.
Looking ahead, Tech Mahindra is poised to leverage the synergistic opportunities presented by this acquisition, further consolidating its position as a leading player in the global IT services landscape. With a focus on innovation, customer-centricity, and strategic expansion, Tech Mahindra is primed to unlock new avenues of growth and deliver enhanced value to its stakeholders in the times to come.
