Hexaware to Acquire SMC Entities in $120 Million Deal to Expand GCC Capabilities

17 Jul 2025 , 11:42 AM

Hexaware Technologies has signed definitive agreements to acquire Tech SMC Square India and Tech SMCSquared (GCC) India in a deal valued at up to $120 million (around ₹1,029 crore). The agreements were executed on July 17, 2025.

The acquisition will be settled entirely in cash, and the transaction is expected to close immediately, as per the company’s exchange filing. The total consideration has been structured in three parts:

• $45 million will be paid upfront.
• A further $45 million has been earmarked as performance-linked earnouts.
• An additional $30 million may be paid out as a bonus based on outperformance milestones.

The deal aligns with Hexaware’s ambition to scale in the fast-growing Global Capability Center (GCC) market, which is expected to surpass $100 billion in India by 2030.

Both SMC entities collectively bring a team of around 500 professionals, with operational hubs in Bengaluru and Hyderabad and a market-facing office in the United States. This gives Hexaware a ready-made framework to strengthen delivery and expand its global footprint.

Hexaware stands to gain several strategic advantages:

• It will tap into SMC’s expertise in setting up and managing mid-market GCCs, giving it a head start in newer client segments.
• It can now extend SMC’s services to its existing customer base, unlocking cross-selling opportunities and new revenue streams.

With SMC’s foundation in place, Hexaware can integrate its own strengths in AI, analytics, cloud solutions, and enterprise platforms to deliver comprehensive GCC transformation solutions.

This move is also expected to bolster Hexaware’s positioning in the global tech services space, enabling it to attract skilled talent and offer end-to-end capabilities for clients looking to scale or optimise their offshore centers.

The company views this acquisition as a long-term investment in an area that is increasingly becoming central to how global enterprises manage technology, operations, and innovation.

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