Hexaware Tech edges higher after inking deal to acquire GCC building firm SMC Squared

Hexaware Technologies advanced 1.35% to Rs 869 after the company announced that it has entered into share purchase agreements for the acquisition of Tech SMC Square India and Tech SMCSquared (GCC) India.

The acquisition is subject to the satisfaction of closing conditions, the company said.

In India, the Global Capability Center (GCC) segment is experiencing exponential growth, with the market projected to exceed $100 billion by 2030.

Hexaware stated that this presents a significant opportunity for the firm to expand its footprint and deepen its capabilities in this space.

The acquisition will be carried out for an all-cash consideration of up to $120 million (around Rs 10,291.2 crore), including an upfront payout of $45 million, earnouts worth up to $45 million, and an additional $30 million as outperformance bonus. The transaction is expected to close on the same day, July 17.

SMC Group currently has around 500 employees, with a go-to-market office in the United States and delivery centers in Bengaluru and Hyderabad.

The SMC Group includes the US-based parent SMC Squared LLC, along with its Indian subsidiaries. The combined group posted a turnover of $22.58 million in calendar year 2024, compared to $14.35 million in 2023 and $7.34 million in 2022. Their services span the IT and ITeS segments, operating across India and the US.

Hexaware said that acquiring SMC would provide immediate access to well-established GCC expertise. The integration will enhance the companys ability to offer end-to-end solutions for setting up and managing GCCs globally.

Hexaware Technologies is a global digital and technology services company with artificial intelligence (AI) at its core. The company leverage technology to deliver innovative solutions that help its customers in their digital transformation journey and subsequent operations.

The companys consolidated net profit increased 2.6% to Rs 327.2 crore on 1.7% rise in revenue from operations to Rs 3,207.9 crore in Q1 CY25 over Q4 CY24.

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