Hexaware acquires US-based Mobiquity in $182 million cash deal

Industry:    June, 2019

IT services company Hexaware Technologies Ltd on Friday said that it has acquired US-based digital services company Mobiquity for $182 million in an all cash deal, the company said in an exchange filing.

With a global presence across three continents, Mobiquity is one of the largest independent customer experience consulting firms that specializes in creating frictionless multi-channel digital experiences using cloud technologies, the statement said.

Mobiquity creates digital products for well-known brands in the world, such as Amazon Web Services, Rabobank, Philips, Wawa, Backbase and Otsuka.

“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. Our combined capabilities will enhance our market positioning and opportunity to make an impact for our clients,” said R Srikrishna, CEO, Hexaware Technologies.

The transaction involves an upfront payment of $131 million and deferred payouts of $51 million, the filing said.

“Over the years Mobiquity Inc. has established a benchmark in defining omnichannel digital experiences and next-gen user interfaces, such as smart speakers and digital assistants. Their methodology combines consulting, design and deep engineering capabilities that leverage the Cloud. At Hexaware, we have been building capabilities in digital engineering, marketing & content platforms, e-commerce and CRM. Together we will now offer a comprehensive suite of digital solutions enabling superlative customer experiences,” said Sandeep Dhar, President, Customer Experience Transformation (CXT) Business, Hexaware Technologies.

Mobiquity Inc.’s leadership and teams will continue without any changes to structure or ways of working, said Dhar.

Mobiquity recorded a revenue of $70 million in 2018, up from $53 million in the previous year.

The acquisition adds to Hexaware’s global delivery footprint with its centers in Florida, Boston, Philadelphia, New York, Amsterdam, Pune and Ahmedabad.

Hexaware is majority owned by private equity firm Baring Private Equity Asia.