Bangalore-based IT services and back-office support provider MphasiS, now a unit of Hewlett-Packard, said on Monday that it would acquire Florida-based Digital Risk for $175 million (Rs 960 crore) in an all-cash deal to gain a foothold in an exploding market for mortgage services.
Digital Risk provides specialised risk, compliance and transaction management solutions for the mortgage industry. HP, better known for making computers and printers, is on an aggressive drive to promote services revenue.
Digital Risk has a compounded revenue growth of 70% for the last three years and is expected to earn revenue of around $127 million this year.
“Digital Risk’s analytics platform combined with 1,500 mortgage specialists makes them unique,” said Ganesh Ayyar, chief executive officer, MphasiS in a statement to BSE.
The deal is expected to be completed by January.
Shares of MphasiS closed at R400.9, up by Rs. 12.5, or 3.33%, following the announcement.