Hexaware Technologies share price rose in early trade today after the Mumbai-based firm announced the acquisition of 100% stake in US firm Mobiquity for a total consideration of $182 million (Rs 12,657 crore) to expand its cloud and automation service offerings. Hexaware Technologies share price rose up to 3.64% to Rs 358.55 compared to the previous close of Rs 345.95 on BSE.
Hexaware Technologies share has gained after three days of consecutive fall. Hexaware Technologies share price has fallen 20% during the last one year and gained 7% since the beginning of this year.
The deal will help Mumbai-based Hexaware gain traction in its banking and pharmaceutical verticals, through Mobiquity's digital products.
Hexaware will pay $131 million upfront to Mobiquity and a deferred consideration of $51 million will be paid based on earnouts, the company said.
US-based Mobiquity makes digital products for partners including Amazon's AWS, Netherlands-headquartered software company Bankbase, Rabobank, Philips, Wawa, Backbase and Otsuka.
Mobiquity group revenue stood at $70 million for the year ended December 31, 2018.
This acquisition would help gain traction in banking and pharma verticals, which are the focus areas for Hexaware. It also, brings in valued partnerships particularly with AWS and Backbase, the Indian firm said. Mobiquity adds to Hexaware's global delivery footprint with its centers in Florida, Boston, Philadelphia, New York, Amsterdam, Pune and Ahmedabad.
Mobiquity is an independent customer experience consulting firm specializing in creating frictionless multi-channel digital experiences and leveraging cloud technologies.
Commenting on the deal, R Srikrishna, CEO of Hexaware Technologies said "Hexaware enters an exciting new phase of growth and capability with the acquisition of Mobiquity Inc. 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. Both Hexaware and Mobiquity have created very strong impact for their clients and have a mutually complementing position. Our combined capabilities will enhance our market positioning and opportunity to make an impact for our clients. "
John Castleman, CEO of Mobiquity Inc said he is excited about the growth prospects. "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."
Edited by Aseem Thapliyal