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DAL Group completes business combination with Chardan 2008 China Acquisition Corp

The principals of FlatWorld Capital in Hyderabad and New York and DAL Group worked over the last two years to develop a long-term strategic plan with management and entered into a letter of intent with DJSP in 2008,

March 20, 2010 1:45 IST | India Infoline News Service

FlatWorld Capital LLC, a Hyderabad and New York based global private equity firm, and its affiliates announced that their affiliated subsidiary, DAL Group, LLC, has completed a business combination with Chardan 2008 China Acquisition Corp. (a British Virgin Islands based Special Purpose Acquisition Company), DJS Processing, LLC, Professional Title and Abstract Company of Florida, LLC and Default Servicing, LLC to become DJSP Enterprises, Inc.


The principals of FlatWorld Capital in Hyderabad and New York and DAL Group worked over the last two years to develop a long-term strategic plan with management and entered into a letter of intent with DJSP in 2008, subsequently contributed the letter of intent to DAL Group, LLC in May 2009 and consummated the transaction on January 15, 2010.


DJSP is the largest provider of processing services for the mortgage and real estate industries in Florida and one of the largest in the United States. The Company provides a wide range of processing services in connection with mortgages, mortgage defaults, title searches and abstracts, REO (bank-owned) properties, loan modifications, title insurance, loss mitigation, bankruptcy, related litigation and other services.


The Company's principal customer is the Law Offices of David J. Stern, P.A., whose clients include all of the top 10 and 17 of the top 20 mortgage servicers in the United States, many of which have been customers for more than 10 years. The Company has approximately 1,000 employees and contractors and is headquartered in Plantation, Florida, with additional operations in Louisville, Kentucky and San Juan, Puerto Rico.


The Company's U.S. operations are supported by a scalable, low-cost back office operation in Manila, the Philippines that provides data entry and document preparation support for the U.S. operation. The Company generated revenues of approximately $260 million and adjusted net income of $45 million for the twelve months ended December 31, 2009.


Raj K. Gupta, Partner of FlatWorld Capital LLC, said, “FlatWorld Capital is excited about investing in the mortgage processing and legal process outsourcing industry where we have significant expertise. We look forward to working with all stakeholders to bring significant value add to this opportunity. We will continue to apply our team’s SPAC and global offshoring expertise to similar investment opportunities in the future.”


 

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