MphasiS buys US mortgage management firm for $175 mn
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MphasiS Ltd, an Indian IT services and back-office support provider and a unit of Hewlett-Packard Co, has agreed to buy U.S.- based Digital Risk LLC, a mortgage management specialist, for $175 million.
The purchase furthers MphasiS' strategy of focusing on financial services clients, a shift the company started in 2010, CEO Ganesh Ayyar said in a statement.
Florida-based Digital Risk sells software, analytics and forensics solutions that mortgage providers and insurers can employ to reduce risk of default and ensure regulatory compliance, according to the statement.
Bangalore-headquartered MphasiS expects the all-cash deal to conclude by January 31, subject to regulatory approvals. Privately held Digital Risk has 1,500 staff and expects $127 million in revenue for the year ending December 2012.
Avendus Capital acted as financial adviser and Goodwin Procter LLP acted as legal adviser to MphasiS. Portico Capital Securities LLC served as financial adviser to Digital Risk.
MphasiS to acquire Digital Risk for USD 175 mn
New Delhi, (PTI): IT firm MphasiS today said it will acquire US-based Digital Risk for USD 175 million (about Rs 960 crore), a move that will help it attain leadership position in the US mortgage services market.
The Florida-based Digital Risk is one of the largest independent providers of solutions related to risk, compliance and transaction management to the US mortgage market.
The acquisition is an all-cash deal valued at USD 175 million with an additional earn- ut component, Mphasis said in a statement.
This acquisition significantly enhances MphasiS' onshore presence in the US, it added.
MphasiS has plans to expand its footprint in the US creating up to 500 new jobs in the near future.
Digital Risk is expected to register revenues of USD 127 million in CY2012 and has grown at revenue CAGR of 70 per cent in the last three years.