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Hexaware acquires US-based digital services firm Mobiquity for $182 million
suviralshukla
Hexaware, an IT services firm, headquartered at Mumbai, has acquired US-based digital services company Mobiquity for $182 million (approx ₹1,266 crore) cash deal, cited yourstory. The acquisition will make way for Hexaware onto a new phase of growth and capability.
"This is the largest ever investment by Hexaware and the combined entity aims to directly compete with large digital agencies and consulting firms,"R Srikrishna, CEO of Hexaware Technologies said.
"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," Srikrishna added.
Hexaware Technologies Limited was founded by Srikrishna in 2014. It is an information technology and business process outsourcing service provider company based in Navi Mumbai.
While, Mobiquity, based out of US, was founded by John Castleman in 2010. It is a digital consultancy that partners with the world's leading brands to design and deliver compelling digital products and services for their customers.
The company 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.
"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.
Hexaware said that post acquisition, the company will make an upfront payout of up to $131 million and a deferred consideration of up to $51 million.
This acquisition would help gain traction in banking and pharma verticals, which are the focus areas for Hexaware, the company added.
Besides, according to ratings agency ICRA, the Indian IT services sector is expected to register a growth of 6-8 per cent during 2019-20.
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