IT firm Hexaware Friday said it has acquired US-based Mobiquity Inc for a total consideration of about USD 182 million (approximately Rs 1,266 crore). Mobiquity creates digital products for brands like Amazon Web Services, Rabobank, Philips, Wawa, Backbase and Otsuka. Mobiquity group revenue was USD 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 with this acquisition, Hexaware enters an exciting new phase of growth and capability.
"Mobiquity strengthens two of our key strategic offerings: Cloudify Everything and Customer Experience Transformation. We are seeing 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 USD 131 million and deferred consideration of up to USD 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 USD 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," John Castleman, CEO of Mobiquity, said. Mobiquity adds to Hexaware's global delivery footprint with its centres in Florida, Boston, Philadelphia, New York, Amsterdam, Pune and Ahmedabad, the statement said.
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