Tech Mahindra acquires Philippine BPO company for AUD 5 million

Tech Mahindra has acquired Philippine business process outsourcing company Orchid Cybertech Services Inc (OCSI), a service provider to Australia’s TPG Telecom.

The 100% stake acquisition is valued at A$5 million and will be made through its wholly-owned subsidiary vCustomer Philippines Inc., the IT services and consulting company announced on Tuesday.

The deal will not only strengthen Tech Mahindra’s “long-standing relationship” with TPG, but also help expand its existing customer experience capabilities and business in the Philippines. This acquisition will accelerate the transition and enable us to realize incremental revenue.

“As part of the 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 company said in a filing.

OCSI, which provides customer experience-related services to TPG Telecom, has approximately 2,950 full-time employees and reported revenue of $37.3 million for the year ended July 31, 2023. OCSI was established in the Philippines in October 2004 and had sales of US$34.8 million and US$29.9 million in FY22 and FY21, respectively.