Hexaware acquires full stake in SMC Squared for ₹1,029 crore in cash deal

aggregate consideration including contingent components for the acquisition is up to $ 120 million (equivalent to Rs 1,029 crore) subject to certain customary adjustments on cash, debt and taxes, the

IT company Hexaware Technologies has acquired 100 per cent stake in SMC Squared for $120 million, about ₹1,029 crore, in an all-cash deal to expand its play on global capability centres, the company said in a regulatory filing.

SMC Squared builds, operates and transfers global capability centres (GCC).

"By acquiring SMC, Hexaware gains established GCC expertise: SMC's proven playbook and relationships in the mid-market GCC segment will accelerate our go-to-market strategy. We will extend SMC's offerings to our broader client base, including existing Hexaware customers," the filing said.

The aggregate consideration including contingent components for the acquisition is up to $120 million (equivalent to₹ 1,029 crore) subject to certain customary adjustments on cash, debt and taxes, the filing said.

 

"The breakup of consideration is $45 million upfront payout, up to $45 million of earnouts and up to $30 million outperformance earnout bonus," the filing said.

The acquisition does not require any governmental or regulatory approvals and was closed on the same day of the announcement, the company said.

Hexaware expects to deliver end-to-end solutions for clients looking to optimize and scale their GCC operations with this acquisition.