Tech Mahindra acquires HGS for $87.1 million

Tech Mahindra acquires HGS for $87.1 millionTech Mahindra, a subsidiary of vehicle manufacturer Mahindra & Mahindra, on Tuesday announced that it had acquired call centre Hutchison Global Services (HGS) for $87.1 million (about Rs 482 crore).

The acquisition of HGS, the call centre arm of Hutch, will allow Tech Mahindra to expand the reach of its IT and BPO businesses further. As part of the deal, Tech Mahindra also gained HGS' clients who committed business worth as much as $845 million over next five years.

Speaking about the deal, Tech Mahindra Executive Vice-Chairman Vineet Nayyar said, "The acquisition will provide considerable enhancement of Tech Mahindra's expertise in customer management space and will thus be a key component of its strategic plans going forward."

Mr. Nayyar added that that deal would enable the company to extend services to many more Hutchison group companies and also to many other customers and verticals.

Tech Mahindra President (Corporate Affairs and Business Service Group) Sujit Baksi, president of Corporate Affairs & Business Service Group at Tech Mahindra, said that that the deal would complement the business we the company is already doing, as well as the geographies where the company is already present.

HGS, which has an associate base of more than 11,500 employees, operates in Mumbai and Pune and delivers customer lifecycle services to clients in the United Kingdom, Ireland and Australia.

Kotak Investment Banking and Goldman Sachs acted as financial advisers to Tech Mahindra and HGS, respectively.