Software services firm HCL Technologies Ltd has acquired US-based mortgage business process outsourcing (BPO) company Urban Fulfillment Services (UFS) LLC for around $30 million.
On the acquisition, Anoop Tiwari, Corporate Vice President and Global Head of Business Services, HCL Technologies, said:
The acquisition of Urban Fulfillment Services strengthens HCL’s capabilities in mortgage BPO services, loan fulfillment and debt servicing space
Further adding to that, he said:
Combining UFS’ talent and client portfolio with HCL’s deep industry expertise and business acumen, offers us the unique opportunity to provide platform–based services on our own platform, driving transformation through robotics process automation
Urban Settlement Services, LLC (doing business as Urban Lending Solutions (ULS)) was founded by Charles Sanders in 2002. Subsidiaries of USS such as UFS (Urban Fulfillment Services) provide a wide variety of outsourced services to its clients which include mortgage fulfillment services, home retention solutions, appraisals and valuation services, title and settlement services, document fulfillment, call center and collection services.
The transaction is expected to be completed by June which depends to certain closing conditions. Some of the conditions include the transfer of licenses and approvals of the customers as per the report.
Commenting on the UFS, Charles S. Sanders, CEO of Urban Lending solutions, said:
The synergies between UFS’s client-focused and efficient business processing services and HCL’s technology leadership and financial strength will create an unparalleled competitor and leading provider of state-of-the-art services to the enterprise customers
As per the deal, HCL will be acquiring 100% stake in UFS. Mortgage servicing is a regulated activity in the USA and the transaction would require regulatory approvals for obtaining the licenses.
The company claims that its revenue rose to $48 million for the year ended 31 December 2016 from $39 million in 2015 and $18 million in the previous year.
ULS (Urban Lending Solutions) also invests time and capital to assess and train each staff member so that the employees have extensive knowledge of regulations that impact the mortgage industry. ULS’ clients include lending institutions, credit unions and mortgage servicers. ULS also offers document fulfillment to the many sectors which include healthcare, government, utilities, higher education, and oil and gas.