Tech Mahindra announces acquisition of Orchid Cybertech

On Tuesday, IT services company Tech Mahindra announced acquisition of a 100% stake in Philippines-based Orchid Cybertech Services through its wholly-owned subsidiary for $3.27 million. It has about 2,950 full time employees and for the fiscal ended on July 31, 2023, the company registered a turnover of $37.3 million. 

“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 company said.

To be sure, Orchid Cybertech provides customer experience related services to TPG Telecom, which has a long standing relationship with Tech Mahindra. The IT services giant said in regulatory filing said that this deal will strengthen the relationship with TPG, aid in expanding existing customer experience capabilities and the business in the Philippines.

The last acquisition made by Tech Mahindra was announced in March 2022. The company acquired 100% stake in Mumbai-based enterprise application company Thirdware for  $42 million (about ₹322 crore) in an all-cash deal. At the time of acquisition, the company said that this acquisition will bolster its digital solutions and services in areas like in automotive consulting, design, development.

Last week, another IT services giant Wipro announced the acquisition of a 60% stake in Aggne Global, a US-based insurtech, for $66 million. This move is aimed at bolstering Wipro's presence in the insurance sector, particularly in property and casualty (P&C) insurance. 

With this investment, Wipro becomes the majority shareholder in Aggne, gaining access to its unique capabilities and intellectual property (IP) in the P&C insurance space. The collaboration is expected to provide enhanced value, quicker speed-to-market, and distinctive services for clients in the P&C sector, according to Wipro.