India's fourth largest software services firm HCL Technologies Ltd on Monday said it has entered an agreement to buy 100 per cent stake in US-based Urban Fulfillment Services LLC (UFS) for up to USD 30 million in cash.
“HCL Technologies announced an agreement to acquire Urban Fulfillment Services, LLC, (UFS), a provider of mortgage business process & fulfilment services,” the company said in a filing to the Bombay Stock Exchange on April 24, 2017.
UFS is a provider of mortgage business process and fulfilment services and was founded in 2002. It has over 350 highly skilled professionals. The company operates 3 centres in the US.
It further said that, the total cash consideration for this transaction is up to USD 30 million, including contingent payments subject to certain financial milestones.
Moreover, the deal is expected to be completed by June 2017, subject to certain closing conditions including transfer of licences and approval of the customers, it added.
Mortgage servicing is a regulated activity in USA and the transaction would require regulatory approvals for obtaining the licenses.
Commenting on the development, HCL Technologies, Corporate Vice President and Global Head - Business Services, Anoop Tiwari said, “The acquisition of UFS strengthens HCL's capabilities in mortgage BPO services, loan fulfilment and debt servicing space.”
Meanwhile, shares of the company closed at Rs 817.85 apiece, up 0.65 per cent, from previous close on BSE.