- Urban Fulfillment Services (UFS) to be taken over by HCL Technologies Ltd for $30 million
The takeover of the mortgage business process outsourcing company is supposed to be completed by June.
Software services giant HCL Technologies Ltd announced on Monday, April 24, that it has entered into an agreement to take over US-based Urban Fulfillment Services (UFS), a mortgage business process outsourcing (BPO) company, for up to $30 million (over Rs 193 crore) in cash, besides other contingent payments.
Having been founded in 2002, UFS is a renounced provider of mortgage business process and fulfilment services, with three centres in the US, and more than 350 highly skilled professionals as part of its employee roster. In the year ended 31 December 2016, UFS’s revenue impressively rose to a sum of $48 million, from the considerably lower amount of $39 million in 2015, and the meagre $18 million in 2014.
However, as per the terms of the agreement with HCL, India’s fourth largest software services firm, if the deal is to go through, there are still certain financial milestones that the UFS would have to meet. It is expected that the agreement will be finalised and the takeover will be completed by June 2017, following the mandatory closing conditions which include the transfer of licences and customer approval.
In the United States, obtaining a Mortgage servicing license requires a company to obtain a number of regulatory approvals, as it is a regulated activity. So HCL Technologies Corporate Vice President and Global Head – Business Services Anoop Tiwari stated that this acquisition is expected to considerably improve HCL’s capabilities in mortgage BPO services, loan fulfilment and debt servicing space.