HCL Technologies to acquire US’s Urban Fulfillment Services for $30 million
HCL Technologies’ acquisition of Urban Fulfillment Services is expected to be completed by June, subject to closing conditions such as transfer of licences
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Mumbai: Software services firm HCL Technologies Ltd on Monday said it has agreed to buy US-based mortgage business process outsourcing (BPO) company Urban Fulfillment Services Llc (UFS) for around $30 million.
The transaction includes payments that are subject to Urban Fulfillment meeting certain financial milestones.
“The acquisition of Urban Fulfillment Services strengthens HCL’s capabilities in mortgage BPO services, loan fulfilment and debt servicing space,” Anoop Tiwari, corporate vice-president and global head of business services at HCL Technologies said in a statement to the stock exchanges.
Mortgage servicing is a regulated activity in the US, requiring regulatory approvals.
The transaction is expected to be completed by June subject to certain closing conditions, including transfer of licences and approvals of the customers, the statement said.
“The synergies between UFS’s 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,” said Charles S. Sanders, CEO of Urban Lending solutions. Urban Fulfillment is a subsidiary of Urban Lending.
Founded in 2002, Urban Fulfillment has three centres and has more than 350 employees. The company’s revenue rose to $48 million for the year ended 31 December 2016 from $39 million in 2015 and $18 million in the previous year.
HCL Technologies operates in 32 countries and had consolidated revenues of $6.7 billion for the 12 months ended 31 December 2016. In October last year, the IT major agreed to acquire Butler America Aerospace Llc. for $85 million in cash to strengthen its position in aerospace and defence engineering services.
In February 2016, it signed a deal with the Volvo Group to buy the latter’s external IT business. HCL also acquired UK-based Point to Point Ltd and Point to Point Products Ltd, a cloud solutions design, implementation and delivery company, in January last year.