MphasiS, part of Hewlett-Packard, announced on Monday that it had reached a “definitive agreement” to acquire Florida-based Digital Risk LLC in a deal worth $175 million. A statement released by MphasiS said Digital Risk’s expertise in risk, compliance and transaction management solutions would enable MphasiS to target the mortgage services market in the U.S.
It pointed out that Digital Risk ha licence to operate in 46 states. The deal is expected to be consummated by January 31, 2013.
“Digital Risk is ranked number 11 among the fastest growing private financial services companies in the U.S., in 2012,” observed MphasiS. Digital Risk is expected to earn revenues of $127 million in 2012. The company had registered a compound annual rate of 70 per cent in the last three years, it noted.
MphasiS CEO Ganesh Ayyar said the company’s transformation in 2010 was based on focussing on the financial services industry, while offering “specialised services to chosen segments.” The acquisition of Digital Risk fits with this focus because the target company offers specialised services to the mortgage industry, Mr. Ayyar said. “Their analytics platform, combined with 1,500 mortgage specialists, makes them unique and differentiated,” he added .
MphasiS said it had plans to “expand its footprint in the U.S. by creating up to 500 new jobs in the near future.”