In a significant strategic move aimed at bolstering its presence in India’s rapidly expanding Global Capability Center (GCC) sector, Hexaware Technologies has announced the acquisition of two key entities—Tech SMC Square India and Tech SMCSquared (GCC) India —for a total consideration of up to INR 1,029 crore. Following the news, the stock shot up by 3% with Hexaware trading at INR 882.05 in morning deals.
The all-cash deal is worth USD 120 million (~INR 1,032 crore) with an upfront payment of USD 45 million (~INR 387 crore), performance-based earnouts of up to USD 45 million (~INR 387 crore) and additional USD 30 million (~INR 258 crore) on outperformance targets. The deal closed the same day and is a big tick in the GCC box for Hexaware.
Hexaware Acquisition of SMC Square: Strategic Fit in Billion Dollars Market
India’s GCC market is on a remarkable growth trajectory, with projections placing its value at over USD 100 billion (~INR 8.60 lakh crore) by 2030, according to a Nasscom-Zinnov report. For Hexaware, this transaction is not merely a financial investment—it represents a strategic bet on the future of enterprise digital operations, talent transformation, and AI-led business process integration.
SMC Squared, a well-regarded player in the GCC domain, brings to the table a workforce of approximately 500 professionals, with delivery hubs in Bengaluru and Hyderabad and a go-to-market office in the United States. The company has developed a strong reputation for building and managing high-performance GCCs for Fortune 500 companies, mid-sized enterprises, and digital-native firms alike.
“This adds to what we can deliver globally with strengthened capabilities in AI, analytics, modernization and enterprise platforms,” said Patricia Connolly, CEO of SMC Squared. She and COO Steven Stephan will continue to lead the business under the Hexaware umbrella, with brand identity and operational continuity.
Hexaware’s GCC 2.0 Vision
The acquisition coincides with Hexaware’s rollout of its new “GCC 2.0” service line—an evolved model that fuses human expertise with digital agents and proprietary delivery platforms. The goal: to transition GCCs from traditional cost-saving back-office functions into strategic value centers powered by AI, automation, and innovation.
Amrinder Singh, President & Head – EMEA & APAC Operations at Hexaware, emphasized the transformational potential of this merger. “With SMC Squared, we gain proven governance, delivery credibility, and scale in areas where execution strength is non-negotiable,” he said. “This acquisition enables us to deliver long-term value to enterprises, leveraging our proprietary IT delivery platforms and a human-digital agent model.”
SMC’s models—build-optimize-transfer, managed services, and hybrid solutions—will be part of Hexaware’s overall offerings to support clients who want to set up, optimize, or expand GCC operations globally.
Market Response and Financials
Investors reacted positively. Hexaware opened higher on 17 July 2025 and touched an intraday high of INR 882.05 before settling around INR 870.50 by mid-morning. The company’s market cap is over INR 52,000 cr and has risen 30% in the last 3 months.
The SMC group has a growing topline. The combined revenue of the SMC group was USD 7.34 million (~INR 63 cr) in 2022, USD 22.58 million (~INR 194 cr) in 2024, and USD 16 million (~ INR 137 cr) in H1 2025.
Notably, this is not a related party transaction and does not require any government or regulatory approvals, so the deal will close quickly.
Client Endorsements and Global Ambitions
Among SMC Squared’s prominent clients is Papa John’s International, whose Vice President for Corporate Systems & Enterprise Data, Michael Wyant, praised the partnership for its transformative impact. “From modernizing our ERP systems to enhancing our Workday integrations, SMC has consistently delivered. We look forward to working together, now with Hexaware, to accelerate modernization,” he said.
With this deal, Hexaware has not only achieved its GCC 2.0 goals but also positioned itself as a digital transformation partner for global companies. The move brings scalability, domain expertise and value proposition to the table, making Hexaware a strong player in the fast-evolving space.
Looking Ahead
Hexaware acquisition of SMC Square comes at a time when companies worldwide are moving beyond cost arbitrage and looking for strategic partners who can drive innovation, agility and business impact. By combining SMC Squared’s institutional knowledge and Hexaware’s platform-driven capabilities, the company is well-positioned to capitalise on this trend.
However, analysts are cautious. While the deal has strategic merit, concerns have been raised on valuations. Hexaware is trading at a P/E of 44.8 which is way above its mid-cap IT peers and could temper the upside in the near term.
Still with a well-executed integration plan and strong leadership team, Hexaware’s acquisition of SMC Squared could be a new benchmark for Indian IT companies to scale in the GCC era. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.