MphasiS rallies on acquisition of US mortgage management firm

The company has signed a definitive agreement to acquire U.S.-based Digital Risk LCC, a mortgage management specialist, for $175 million.

MahasiS has rallied 5% to Rs 409 after information technology consulting and software firm said that it has signed a definitive agreement to acquire U.S.-based Digital Risk LCC, a mortgage management specialist, for $175 million.

“Digital Risk is one of the largest independent providers of risk, compliance and transaction management solutions to the United States mortgage market. The acquisition is an all cash deal valued at $175 million with an additional earn-out component,” MphasiS said in a statement.

Digital Risk provides highly speciaiIsed risk, compliance and transaction management solutions for the mortgage Industry. The company has signed the agreement through one of its subsidiaries in US.

 

The transaction is currently expected to close by January 31, 2013 subject to regulatory approvals and other customary closing conditions, it added.

The stock opened at Rs 403 and hit a high of Rs 413 on the BSE. A combined around 48,000 shares have changed hands on the counter in opening deals on both the exchanges.