Tech Mahindra acquires Orchid Cybertech Services to expand BPO capabilities

Tech Mahindra, a leading global technology company through its wholly-owned subsidiary, vCustomer Philippines Inc., has announced the acquisition of 100% equity shares in Orchid Cybertech Services, Inc. (OCSI), marking a significant expansion in the Business Process Outsourcing (BPO) sector. The transaction, valued at AUD 5 million in an all-cash deal, underscores Tech Mahindra’s commitment to enhancing its customer experience services, particularly for TPG Telecom, a longstanding client.

Orchid Cybertech Services, Inc., known for its robust presence in the BPO industry, brings under its belt approximately 2,950 full-time employees and a turnover of US$37.3 million for the fiscal year ending July 31, 2023. This acquisition is not a related party transaction, and neither the promoter nor group companies have any interest in the acquired entity, ensuring a transparent and strategic expansion for Tech Mahindra.

This acquisition is pivotal for Tech Mahindra, as it not only solidifies its relationship with TPG Telecom but also significantly expands its existing customer experience capabilities in the Philippines. By integrating OCSI’s assets and employees, Tech Mahindra is poised to realize incremental revenue and strengthen its service offerings to TPG Telecom and beyond.

The cost of the acquisition, pegged at AUD 5 million, reflects Tech Mahindra’s strategic investment in the BPO sector and its commitment to fostering growth and innovation. OCSI’s consistent revenue growth over the past three years, from US$29.9 million in FY21 to US$37.3 million in FY23, demonstrates the company’s solid performance and potential for further expansion under Tech Mahindra’s leadership.

The acquisition of Orchid Cybertech Services by Tech Mahindra represents a significant move in the global BPO landscape, reflecting the industry’s dynamic nature and the continuous search for innovation and excellence in customer experience services. This merger not only strengthens Tech Mahindra’s foothold in the Philippines but also sets a precedent for future strategic acquisitions in the technology and BPO sectors.

Tech Mahindra’s acquisition of Orchid Cybertech Services, Inc. marks a new chapter in the company’s growth story, emphasizing its commitment to enhancing customer experience and expanding its global presence in the BPO industry. With this strategic move, Tech Mahindra is well-positioned to deliver superior services to TPG Telecom and leverage its expertise to foster innovation and growth in the technology sector.