MphasiS, Digital Risk deal to be through by next month
Digital Risk, America's largest independent provider of mortgage risk, compliance and transaction management solutions, is set to be acquired by India-based global services provider, MphasiS, a Hewlett Packard (HP) company.
The transaction is expected to close late in January 2013 subject to the satisfaction of regulatory requirements and customary closing conditions, the Florida-based company said announcing the USD 175 million all-cash deal.
The acquisition provides Digital Risk a global footprint to accommodate clients' global risk and compliance needs, access to US facilities to further accelerate growth of US operations and access to MphasiS' technology and analytical centres of excellence, the company said.
The acquisition is also central to MphasiS' 'hyper-specialisation' strategy, bringing in over 1,500 highly trained mortgage specialists and a deep domain expertise in mortgage risk and compliance.
"The need for risk management in the mortgage market is not only a US issue, but also a global necessity. This acquisition provides the industry and clients a unique offering," said Peter Kassabov, Digital Risk chairman and CEO.
"This acquisition is central to our strategy of offering specialised services in chosen segments," said Ganesh Ayyar, chief executive officer, MphasiS.
"Digital Risk offers highly specialised services in the areas of risk and compliance specific to the mortgage industry. Their analytics platform combined with 1,500 mortgage specialists makes them unique and differentiated."
"The ability to leverage MphasiS' facilities and expertise in both the US and internationally offers a remarkable advantage to our clients," said Jeffrey C. Taylor, co-founder and managing partner of Digital Risk.
"Digital Risk will be the leading US entity with the ability to provide risk, compliance, transaction management solutions to global portfolios - from the US, to the UK, Canada and beyond," he said.
(Arun Kumar can be contacted at email@example.com)