Indian IT services major HCL Technologies will acquire US-based business process outsourcing firm Urban Fulfilment Service LLC in an all cash deal.
Noida-based HCL Tech will be acquiring 100 per cent outstanding shares of the UFS for a total cash consideration of $30 million, including contingent payment, subject to certain financial milestones, the company said in a statement
Founded in 2002, Urban Fulfilment Services is mainly engaged in providing mortgage business process and fulfilment services to its customers. The company has more than 350 employees in the US, with revenue of $48 million, as for the financial year ended December 31, 2016.
“The acquisition of Urban Fulfillment Services strengthens HCL’s capabilities in mortgage BPO services, loan fulfillment and debt servicing space,” said Anoop Tiwari, corporate vice president and global head-business services at HCL Technologies
Mortgage servicing is a regulated activity in the US and the transaction would require regulatory approvals for obtaining the licenses, the company said. It estimates the transaction to be completed by June, 2017.
“The synergies between UFS’ client focused and efficient business processing services and HCL’s technology leadership and financial strength will create an unparalleled competitor and leading provider of state-of-the-art services to the enterprise customers,” added Charles S Sanders, CEO of Urban Lending Solutions.
India’s fourth largest software exporter, HCL has been actively chasing its inorganic growth strategy. In October last year, it agreed to acquire Butler America Aerospace, LLC for $85 million in cash. In April 2016, it announced to buy the IT business of Geometric for $190 million and had acquired the external IT (information technology) business of Sweden’s Volvo Group in February that year.
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