Hexaware To Acquire SMC Squared for $120 Million
By Ankur Chandra | Published at: Jul 17, 2025 12:27 PM IST
Mumbai, July 17, 2025 – Hexaware Technologies Ltd (NSE: HEXT) has entered into definitive agreements to acquire 100% equity in Tech SMC Square India Private Limited and Tech SMCSquared (GCC) India Private Limited, part of the SMC Squared group, in a strategic all-cash deal valued at up to USD 120 million (INR 10,291.20 million). This move is expected to strengthen Hexaware’s GCC 2.0 service capabilities. As the company adds recurring, high-margin GCC services to the portfolio, it boosts future revenue stability and profitability.
The transaction, signed on July 17, 2025, marks Hexaware’s push into the rapidly growing Global Capability Centre (GCC) market in India, furthering its expansion strategy in the IT and ITeS segment.
Hexaware Technologies Share Price Movement
At 10:30 AM, the share traded at ₹865.05 (up by 0.89% from the previous close). The stock opened strongly at ₹875.00 and reached a high of ₹882.05 within a few minutes of the opening hour. It now trades very close to the 52-week high of ₹900 per share.
Acquisition Snapshot
| Detail | Information |
|---|---|
| Target Entities | SMC Squared, LLC; Tech SMC Square India Pvt Ltd; Tech SMCSquared (GCC) India Pvt Ltd |
| Industry | IT and ITeS services, Global Capability Centres (GCCs) |
| 2024 Turnover (SMC Group) | USD 22.58 million (INR 1,891.53 million) |
| Workforce | ~500 employees across the USA, Bengaluru & Hyderabad |
| Closing Date | July 17, 2025 |
| Consideration Type | All Cash |
| Deal Size | Up to USD 120 million (INR 10,291.20 million)* |
| Breakup | USD 45 million upfront, up to USD 45 million earnouts, and up to USD 30 million outperformance bonus |
| Shareholding Acquired | 100% |
| Regulatory Approval Required | None |
| Exchange Rate Used | INR 85.76 per USD |
Strategic Rationale
India’s GCC market is poised to surpass $100 billion by 2030, presenting significant opportunities for IT companies. Hexaware’s acquisition of SMC is a calculated move to gain:
- Established GCC expertise: SMC has set up over 30 GCCs for Fortune 500 companies and startups.
- Scalable delivery model: With delivery hubs in Bengaluru and Hyderabad, and a go-to-market presence in the U.S., SMC brings execution strength.
- Enhanced value proposition: By combining SMC’s proven GCC setup playbook with Hexaware’s capabilities in AI, cloud, analytics, and modernisation, the company aims to deliver full-stack GCC solutions globally.
Gunjan Methi, Company Secretary at Hexaware, confirmed that the acquisition is not a related-party transaction and does not involve any interest of the promoter group.
Financial Performance of SMC Group (Unaudited)
| Calendar Year | Revenue (USD Mn) | Revenue (INR Mn) |
|---|---|---|
| CY 2022 | 7.34 | 578.54 |
| CY 2023 | 14.35 | 1,185.12 |
| CY 2024 | 22.58 | 1,891.53 |
INR conversion based on respective yearly FX rates (CY2022: 78.82, CY2023: 82.61, CY2024: 83.77 per USD)
About Hexaware Technologies
Hexaware Technologies Limited is a listed global IT services firm specialising in IT, BPO, and consulting services. With a strong focus on digital transformation, cloud services, and enterprise modernisation, the company is expanding aggressively in both developed and emerging markets. Hexaware is listed on BSE and NSE under the ticker HEXT.
REF:https://nsearchives.nseindia.com/corporate/HEXAWARETECH_17072025083337_Reg30_Disclosure_for_Acquisition.pdf
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