Tech Mahindra buys Hutch's India call centre for $87 million

Tech Mahindra, the software services provider arm of Mahindra & Mahindra, has acquired BPO company Hutchison Global Services for $87.1 million (about Rs 482 crore).

Hutchison Global Services is a captive BPO services provider with operations in Mumbai and Pune. It provides services to the clients of Hutchison's mobile firm in the UK, Ireland and Australia, a statement from the company said, adding the business has over 11,500 employees in India.

As part of the deal, the clients of Hutchison Global have committed to procure services worth $845 million over a five-year period.

"This acquisition is in line with our growth plans and is a logical next step in extending our relationship with Hutchison. We are committed to this opportunity and excited about the possibilities this acquisition opens up," said Vineet Nayyar, Executive Vice-Chairman, Tech Mahindra.

Kotak Investment Banking was the financial advisor for Tech Mahindra, while Hutchison was advised by Goldman Sachs.

"With this acquisition, we further strengthen our leadership position in the telecom domain. Hutchison's focused service portfolio combined with our domain knowledge, geographic spread and execution excellence will help us become the undisputed leaders in this space, and extend these services to other verticals and markets," said C.P. Gurnani, Managing Director, Tech Mahindra.

Shares of Tech Mahindra closed 1.28 per cent up on the Bombay Stock Exchange at Rs 820.90.

With inputs from agencies