Cognizant to buy CoreLogic India

Information Technology major Cognizant is set to acquire CoreLogic Global Services Private Limited. A definite agreement has already been initialed between the two to facilitate the acquisition.

Founded in 1994, CoreLogic India has offices in Bangalore, Hyderabad, and Mangalore. The India-based captive operation of CoreLogic is at $1.6 billion in 2010.

The purchase price will consist of a cash payment of around $50 million, plus adjustments for working capital and other charges or credits, which will be determined at closing.

Subject to the satisfaction of certain closing conditions, the transaction is expected to close in August 2011.

As part of the transaction, CoreLogic and Cognizant will enter into a services pact with a minimum revenue commitment of $324 million, plus applicable inflation adjustments, over five years with various renewal and extension rights, under which Cognizant will provide a range of services to CoreLogic globally.

Together, the two expect to provide end-to-end business process and analytics solutions across the entire mortgage value chain.

CoreLogic India’s approximately 4,000 associates will become employees of Cognizant after successful closing of the transaction.

CoreLogic provides capabilities in software product development, analytical modelling, domain-centric back-office services and technology support to CoreLogic and its customers primarily in the U.S. mortgage and real estate markets.

“The sale of CoreLogic India to Cognizant leverages the strong foundation that we have already developed in India into a global delivery platform that will enable CoreLogic to expand in the U.S. and also into new global markets,” according to a spokesperson of CoreLogic. “The agreement with Cognizant will also enhance our overall service delivery by leveraging Cognizant’s technology services, broader capabilities and global delivery platforms, providing access to additional highly trained talent, increased automation through their technology expertise and stronger business processes. This is a strategic partnership that creates synergies and a long-term value proposition we expect to benefit our customers through reduced time to market, expanded service delivery and enhanced productivity, operational efficiency and quality,’’ he added.

As one of the largest real estate information and analytics provider in the U.S. market, CoreLogic, it is claimed, has built among the largest and most comprehensive U.S. real estate, mortgage application, fraud and loan performance databases with public, contributory, and proprietary data covering approximately 99 per cent of U.S. residential real estate property records, 80 per cent of mortgage applications, and 85 per cent of mortgage loan servicing performance information.

“We welcome CoreLogic India’s talented professionals to Cognizant. Their deep capabilities in domain-centric back-office services, software product development, and analytical modeling, combined with Cognizant’s domain-aligned technology and business process expertise, will create greater value for our mutual financial services clients and enable the delivery of sophisticated analytics and next-generation business process solutions to market,” a release quoted Francisco D’Souza, President and CEO of Cognizant, as saying.

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Printable version | Jul 29, 2021 10:01:45 AM |

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