Shares of MphasiS Ltd Ltd surged 5% after company announced a definitive agreement to acquire Orlando, Florida, USA based Digital Risk LLC. Digital Risk is one of the largest independent providers of Risk, Compliance and Transaction Management solutions to the United States mortgage market.
The stock is currently trading at Rs406, up Rs17.60. The stock has hit a high of Rs413and a low of Rs393.
Total traded quantity on the counter stood at over 40,079 shares.
The acquisition is an all cash deal valued at USD$ 175 mn with an additional earn-out component.
Digital Risk provides highly specialized Risk, Compliance and Transaction Management solutions for the mortgage industry. Digital Risk’s proprietary Making Mortgages Safe solutions suite is deployed by over 15 blue chip clients across key mortgage constituencies – Originators, Insurers, Issuers and Investors. Digital Risk is licensed to operate in 46 states in the United States.
“We began our journey of transformation in 2010 focusing on the Financial Services Industry. This acquisition is central to our strategy of offering specialized services in chosen segments. Digital Risk offers highly specialized services in risk and compliance area, specific to mortgage industry. Their analytics platform combined with 1500 mortgage specialists makes them unique and differentiated. I am delighted to have Digital Risk with their strong brand join our family.” said Ganesh Ayyar, Chief Executive Officer – MphasiS.