Hexaware buys UK advisory firm CPS for up to ₹139.7 cr
A bolt-on deal that adds a FTSE 100 client relationship but moves the needle less than half a percent of market cap.
What's new
- Hexaware acquired CPS, a UK IT consulting firm, for ₹139.7 cr total.
- CPS brings an existing FTSE 100 client and advisory capabilities.
- The deal is immaterial at 0.45% of market cap and 1% of revenue.
Why this matters
For a company Hexaware's size, this is a tuck-in that strengthens one client relationship without reshaping the business. The financial impact is negligible — investors have no reason to adjust their thesis.
What we're watching
- Whether Hexaware can grow the FTSE 100 account beyond the current engagement.
- Any further bolt-on deals that could signal a shift in M&A strategy.
The full read
Hexaware Technologies has bought CPS, a UK-based IT consulting firm, for an upfront cash payment of GBP 6.0 million plus an earnout of up to GBP 5.0 million — totalling roughly ₹139.7 crores. CPS turns over about ₹149 crores, or 1% of Hexaware's revenue, and serves a single FTSE 100 client it brings along. The acquisition cost is just 0.45% of Hexaware's market cap. By any mid-cap threshold, the deal is immaterial. It does add advisory depth and cements a large-client relationship, but it does not change Hexaware's scale, margin profile, or competitive position. This is a bolt-on, not a statement.