Tech Mahindra acquires Orchid Cybertech Services for $3.2 million

Tech Mahindra, on January 25, reported a 60.6 percent fall in net profit to Rs 510 crore year-on-year for the third quarter ended December 31.

Tech Mahindra announced on February 20 that it has acquired a 100 percent stake in Orchid Cybertech Services (OCSI) through a wholly owned subsidiary for $3.27 million.

Tech Mahindra emphasised on its long-standing relationship with TPG Telecom (TPG). This deal further strengthens the relationship with it and aids in expanding existing customer experience capabilities and business in the Philippines, said the IT major.

As part of the transaction, OCSI, along with its assets and employees, will be integrated into Tech Mahindra, which will then provide customer support and other services to TPG.

Tech Mahindra had last March acquired 100 percent equity shares in Mumbai-based Thirdware Solutions in an all-cash deal for a total consideration of up to $42 million including earnouts.

On January 25, the company reported a 60.6 percent fall in net profit to Rs 510 crore year-on-year for the third quarter ended December 31, in a seasonally weak quarter as slowdown in demand continues in key verticals including hi-tech, telecom and financial services.

At 11.10am on February 20, shares of Tech Mahindra were trading slightly in red down 0.44 percent at Rs 1,304.25 apeice.

Also Read | Inside Tech Mahindra’s restructuring game plan