Wipro to acquire US Mortgaga services firm Opus for $75 mn

Updated: Dec 3 2013, 11:01am hrs
ln sync with its string of pearls strategy, Wipro will acquire US-based Opus CMC in an all-cash deal for $75 million, the Bangalore-based firm said on Monday, reports fe Bureau in Bangalore. Opus, which is engaged in mortgage due diligence and risk management services, is expected to close 2013 with $43.4 million revenues. The $75-million value consideration for Opus will also include a deferred earn-out component spread over the next couple of years.

The buyout is expected to strengthen prospects for Wipros BPO business, which recorded a growth rate in Q2 FY14 that was well below the average for the firm. The M&A team in Wipro is headed by Rishad Premji, chief strategy officer, and this its first purchase in six months. The last acquisition was that of Australian firm Promax Applications Group for 35 million Australian dollars in May 2012, aimed at strengthening its offerings in the analytics space.

Wipro, the country's third largest IT services exporter has been buying small companies to plus gaps whether in domain competency or service offerings.

Founded in 2005 and headquartered in Lincolnshire, Illinois, Opus CMC provides comprehensive risk management solutions to the mortgage industry in the US. It has over 490 employees, including over 315 loan underwriters, spread across 5 centres in the US.