Hexaware Acquires SMC Squared for Rs 1029 Crore

New Delhi, Jul 17 (PTI) IT company Hexaware Technologies has acquired 100 per cent stake in SMC Squared for USD 120 million, about Rs 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 USD 120 million (equivalent to Rs 1,029 crore) subject to certain customary adjustments on cash, debt and taxes, the filing said.

"The breakup of consideration is USD 45 million upfront payout, up to USD 45 million of earnouts and up to USD 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.