HP's MphasiS buys U.S. mortgage management firm for $175 million
BANGALORE (Reuters) - MphasiS Ltd (MBFL.NS), an Indian IT services and back-office support provider and a unit of Hewlett-Packard Co (HPQ.N), 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.
(Reporting by Harichandan Arakali; Editing by Edwina Gibbs)