Hexaware acquires US-based digital services company Mobiquity for $182M
IT firm Hexaware on Friday said it had acquired US-based Mobiquity Inc for a total consideration of about $182 million (approximately Rs 1,266 crore). Mobiquity creates digital products for brands like Amazon Web Services, Rabobank, Philips, Wawa, Backbase and Otsuka. The Mobiquity group revenue was $70 million for the year ended December 31, 2018.
"This is the largest ever investment by Hexaware and the combined entity aims to directly compete with large digital agencies and consulting firms," Hexaware said in a statement.
R Srikrishna, CEO of Hexaware Technologies, said Hexaware was entering an exciting new phase of growth and capability with this acquisition.
"Mobiquity strengthens two of our key strategic offerings: Cloudify Everything and Customer Experience Transformation. We are seeing a strong demand for these capabilities and, with this acquisition, we will be able to further accelerate our contributions to our customers' business growth," he added.
Under the cash deal, Hexware will make an upfront payout of up to $131 million and a deferred consideration of up to $51 million, part of which is contingent on earnouts, Hexaware said in a regulatory filing.
This acquisition would help gain traction in banking and pharma verticals, which are the focus areas for Hexaware, the filing added. Hexaware had reported revenues of $180 million (Rs 1,264 crore) in the January-March 2019 quarter, a year-on-year growth of 10.9 per cent.
"Today we start a bold new chapter in Mobiquity's growth story. Joining hands with Hexaware gives us added scale, a broader portfolio of offerings that are relevant to our clients' digital journeys, and the opportunity to strengthen the Mobiquity brand," said John Castleman, CEO of Mobiquity.
Mobiquity adds to Hexaware's global delivery footprint with its centres in Florida, Boston, Philadelphia, New York, Amsterdam, Pune, and Ahmedabad, the statement said.
According to ratings agency ICRA, the Indian IT services sector is expected to register a growth of 6-8 per cent in US dollar terms during 2019-20.