Tech Mahindra acquires Hutchison Global Services for $87.1 million
Tech Mahindra Limited has acquired Hutchison Global Services Private Limited (HGS) for $87.1 million.
HGS provides customer lifecycle operations to clients in the United Kingdom, Ireland and Australia. It has a workforce over 11,500 employees. HGS operates out of Mumbai and Pune and is among the largest captives in the telecom domain.
As part of the deal, HGS’s clients have committed to procure services worth $845 million over five years, and have agreed to HGS being their exclusive partner for certain agreed services in India.
The acquisition will provide significant enhancement of Tech Mahindra’s expertise in the customer management space and will thus be a key component of its strategic plans going forward. In addition, the acquisition will enable Tech Mahindra to leverage the acquired capabilities and scale for expanding the scope of their existing services to other parts of the Hutchison group, and also to other customers and verticals.
For the deal, Kotak Investment Banking acted as the exclusive financial advisor for Tech Mahindra, while Hutchison was advised by Goldman Sachs. Also, Ernst & Young and AZB Partners acted as the tax and legal advisors respectively for Tech Mahindra, while Khaitan & Co., acted as the legal advisors for Hutchison.
