MphasiS Limited through its US subsidiary has announced a definitive agreement to acquire Digital Risk LLC, provider of Risk Compliance and Transaction Management Solutions to the US mortgage market.

The acquisition is an all cash deal for $175 Mn with an additional earn-out component.

The acquisition will help MpahsiS to strengthen its leadership position in the US Mortgage Service market.

Avendus Capital acted as the exclusive financial advisor and Goodwin Procter LLP acted as legal advisor to MphasiS. Portico Capital Securities LLC served as financial advisor to Digital Risk and Katz, Teller, Brant & Hild acted as legal advisor to Digital Risk.

MphasiS' purchase of Digital Risk will offer an exit route for PE firm Century Capital, which owned about 40% in the company.

Digital Risk provides highly specialized Risk, Compliance and Transaction Management solution for the mortgage industry. The company provides buyers and sellers of mortgage and mortgage backed securities the analytical, technological and risk management services.

Digital Risk proprietary ‘Making Mortgage Safe’ solutions suite is deployed by over 15 blue chips clients across key mortgage constituencies – Originators, Insurers, Issuers and Investors.

Digital Risk with around 1500 professionals is licensed to operate in 46 states in US.

MphasiS is a global service provider, delivering technology based solutions to clients across the world. The company service clients in a variety of industries, including Banking and Capital Markets, Insurance, Manufacturing and Communications. MphasiS' integrated services offerings in Applications, Infrastructure Services, and BPO help organizations adapt to changing market conditions and derive maximum value from IT investments.

Last year, Mphasis acquired American insurance software provider firm - Wyde Corporation.

This May, Wipro acquired Australian company Promax Applications for $36 Mn.

Promax Applications Group speacialises in Trade Promotion Management & Trade Promotion Optimization, Forecasting & Volume Planning, Customer Account Planning & Budgeting, Modeling & Optimization solutions.

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KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
2012-12-03	Digital Risk LLC - MphasiS	M&A	Mphasis Limited	175.00

 

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  Profiles

Company
Name	Promoters	Office	Competitor	Website
Mphasis Limited	Hewlett Packard India Sales Private Limited	Bagmane Technology Park, Byrasandra, C.V. Raman Nagar	HCL Technologies Limited Tech Mahindra Limited Sevenstrata IT Services Private Limited	http://www.mphasis.com

  Advisor

	Avendus Advisors Private Limited
	Portico Capital Securities LLC

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