New Delhi, July 17 -- IT solutions provider Hexaware Technologies has acquired SMC Squared in an all-cash deal to strengthen its presence in India's rapidly growing global capability centre (GCC) market.

The Mumbai-listed company said on Thursday that it has fully acquired SMC Squared in a deal worth $120 million (Rs 1,031 crore). The transaction includes an upfront payment of $45 million, earnout-linked payouts of $45 million, and an additional $30 million earmarked as an outperformance bonus, according to stock exchange filings.

Hexaware, which is backed by private equity major Carlyle and was listed on Indian stock exchanges earlier this year, said the acquisition will help it tap into the growing GCC market in India, which is projected to grow to over $100 billion by the end of the decade, according to a report by Nasscom and Zinnov.

GCCs are offshore hubs set up by global companies to deliver critical business functions such as IT, finance, human resources, analytics, and research and development (R&D).

"Our clients are increasingly looking for GCC partners who bring more than staffing or infrastructure," said Amrinder Singh, president and head of operations for EMEA and APAC at Hexaware. "This acquisition enables us to deliver long-term value to enterprises, leveraging our human and digital agent-driven model and proprietary IT delivery platforms."

Founded by CEO Patricia Connolly and COO Steven Stephan, SMC Squared enables multinational companies to set up GCCs in India, helping them build teams in the country cost-effectively. It operates three models: build-optimize-transfer, managed services, and hybrid solutions. The company, which has a total workforce of around 500, has an office in the US for client engagement and delivery centers in Bengaluru and Hyderabad.

As of 2024, SMC Squared reported a revenue of $22.6 million (Rs 189 crore), according to filings. It has already reported $16 million in revenue in the first half of 2025, and is on track to achieve a 41% annual rise if the momentum sustains.

Post the acquisition, Hexaware will offer a unified GCC services stack, spanning advisory, setup, operations, and optimization. SMC Squared will retain its brand identity under Hexaware and continue delivering its GCC 2.0 service line, Hexaware said.

Published by HT Digital Content Services with permission from VC Circle.