Wipro buys US mortgage firm for $75 million
Indian IT bellwether Wipro Ltd Monday announced it had acquired Opus CMC, a US-based leading mortgage firm, for Rs.75 million (Rs.467 crore) to strengthen its mortgage solutions and outsourcing business.
The eight-year-old Illinois-based Opus Capital Markets Consultants provides risk management solutions, including due diligence to the mortgage industry in the US.
"The Opus acquisition will help us expand in the mortgage back-office segment, and bring differentiated capability with a platform-based risk management offering," Wipro Business Process Outsourcing (BPO) segment vice-president Manoj Punja said in a statement here.
With 490 employees, including 315 loan underwriters and operating from five centres across the US, Opus offers advisory services on mortgage products, residential and commercial, ranging from re-underwriting whole loans to collateral reviews of securitized pools.
Several global banks, mortgage conduits, mortgage investors and independent mortgage originators are among its global customers.
"As Opus has an experienced team with understanding of the emerging needs of mortgage business, we believe it will lead with innovative offerings and extend these capabilities to our banking and financial services customers as well," Punja said.
Leveraging its capabilities with Opus domain knowledge, the global software major will offer end-to-end solutions to all mortgage players with automation and analytics.
"As our industry is driven by the consumer financial protection bureau and government agencies, Wipro will help us assist our clients in navigating the new mortgage regulations and changing business environment," Opus cofounder Joseph Andrea said in the statement.
Wipro hopes to complete the transaction, including a deferred earn-out component by fourth quarter of this fiscal.
(Posted on 02-12-2013)