Tech Mahindra to buy Hutch's India BPO business

Mahindra Group’s IT services company, Tech Mahindra is all set to buy Hutch’s India BPO business for close to $100 mn, sources with direct knowledge said. As part of the deal, Hutch has also made a revenue commitment of $1 bn over the next 5-7 years to Tech Mahindra.

Hutch’s India BPO business caters to three geographies UK, Australia and Ireland. This deal is expected to give a revenue boost to Tech Mahindra and give it a much larger BPO footprint. UK-based Serco was also in the race for the deal.

Investment banking firms Kotak Investment Banking and Goldman Sachs are the advisors to the deal. The deal announcement is expected tomorrow.

Hutchison Global Services has about 12,000 employees operating out of five facilities in India, according to its website.

Tech Mahindra, a unit of Mahindra & Mahindra, and Hutch could not be reached for a comment immediately.

Tech Mahindra, whose clients include global telecoms companies BT Plc and AT&T, is holding a press conference on Tuesday, saying it would make a "strategic announcement."