HCL to acquire US-based firm UFS for Rs 199 cr

With this deal, HCL aims to scale up its digital tech based services, expand local workforce in US

HCL Technologies on Monday said it would acquire US-based mortgage business service provider Urban Fulfillment Services, LLC for more than Rs 199 crore ($30 million), in a deal that would help it to expand its local workforce in the US.

Through the acquisition of UFS, a 15-year-old mortgage business process and fulfilment services provider spread across three centres in the US, HCL aims to scale up its digital technology based services to clients. India's fourth largest IT service providers will also see 350 highly-skilled professionals of UFS joining its team in the US.

The deal is likely to be completed by June depending on certain regulatory approvals for transfer of licenses.

"Combining UFS's talent and client portfolio with HCL's deep industry expertise and business acumen, offers us the unique opportunity to provide platform-based services on our own platform, driving transformation through robotics process automation," said Anoop Tiwari, Global Head, Business Services, HCL.

Turnover of UFS as on December 31, 2016 stood at Rs 319 crore ($48 million).

The Noida-based company has been aggressive in acquiring small firms to drive growth in newer areas such as cloud-based services, engineering design.

In October last year, the company announced acquisition of engineering and aerospace design service provider Butler America Aerospace for nearly Rs 565 crore ($85 million). HCL also bought Mumbai-based engineering service provider Geometric for Rs 1,300 crore last year.