Hexaware technologies has secured approval for a significant corporate restructuring involving two of its key subsidiaries. The IT services company announced that it has received the necessary approvals to merge Mobiquity Velocity Solutions Inc and Mobiquity Inc, with the merger set to become effective from January 1, 2026.

Merger Details

The approved merger will consolidate two important subsidiaries under Hexaware's corporate umbrella. The transaction involves the integration of Mobiquity Velocity Solutions Inc and Mobiquity Inc, both of which operate under the Hexaware Technologies group.

Strategic Implications

This merger represents a strategic move by Hexaware Technologies to streamline its subsidiary operations. The consolidation of these two Mobiquity entities is likely aimed at creating operational efficiencies and better resource allocation within the group structure.

Timeline and Implementation

With the approval now in place, Hexaware Technologies has a clear timeline for the merger implementation. The January 1, 2026 effective date provides the company with adequate time to plan and execute the integration process smoothly, ensuring minimal disruption to ongoing business operations.

The merger approval marks an important milestone in Hexaware's corporate restructuring efforts, positioning the company for enhanced operational efficiency through consolidated subsidiary management.

Hexaware Technologies Limited has made significant progress in its corporate restructuring initiatives with recent regulatory approvals for subsidiary mergers. The company has received approval from the New Jersey Division of Revenue for the merger of its US-based subsidiaries, while earlier board approvals covered Indian subsidiary consolidation.

US Subsidiary Merger Approval

The company received approval from the New Jersey Division of Revenue for the merger of Mobiquity Velocity Solutions Inc and Mobiquity Inc into Hexaware Technologies Inc, effective January 01, 2026. Both transferor companies are wholly-owned step-down subsidiaries of Hexaware Technologies Limited, while the transferee company is a wholly-owned subsidiary.

Indian Subsidiary Merger Progress

Earlier, the board approved a scheme of amalgamation involving Indian subsidiaries under Sections 230 to 232 of the Companies Act, 2013. The merger involves Softcrylic Technology Solutions India Private Limited and Mobiquity Softech Private Limited being absorbed into Hexaware Technologies Limited as the transferee company.

Business Rationale and Operations

The transferor companies operate in complementary areas of technology-enabled services. The US entities focus on mobile technology solutions and end-to-end omnichannel digital consulting services, while the Indian subsidiaries specialize in software development and IT-enabled services. Hexaware Technologies operates across information technology consulting, software development, business process services, data and AI, cloud, Digital IT Operations, and enterprise platforms.

The merger rationale centers on consolidating operations under the same control and management structure. Since all transferor companies are wholly-owned subsidiaries, no cash consideration is involved in either transaction. The proposed mergers are expected to benefit all stakeholders including shareholders, creditors, employees, and other parties involved.

Regulatory Compliance and Structure

The transactions do not fall within the purview of related party transactions as they involve holding companies and their wholly-owned subsidiaries. The Indian merger remains subject to sanction from the National Company Law Tribunal or Central Government, while the US merger has received the necessary regulatory approval.

Since the transferor companies are wholly-owned subsidiaries, the mergers will not result in any changes to the shareholding pattern of the listed entity. The consolidation is expected to streamline operations and enhance operational efficiency within the Hexaware Technologies group structure across both Indian and US markets.