HCL Technologies to buy USbased Urban Fulfillment Services for $30 m

Software services firm HCL Technologies Ltd on Monday said it has bought US-based mortgage business process outsourcing (BPO) company Urban Fulfillment Services Llc. (UFS) for around $30 million.

The transaction includes payments that are subject to Urban Fulfillment meeting certain financial milestones.

“The acquisition of Urban Fulfillment Services strengthens HCL’s capabilities in mortgage BPO services, loan fulfilment and debt servicing space,” Anoop Tiwari, corporate vice-president and global head of business services at HCL Technologies said in a statement to stock exchanges.

Mortgage servicing is a regulated activity in the US, requiring regulatory approvals.

The transaction is expected to be completed by June subject to certain closing conditions.

“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-theart services to enterprise customers,” said Charles S Sanders, CEO of Urban Fulfillment Services .

Founded in 2002, Urban Fulfillment has three centres and has more than 350 employees.

The company’s revenue rose to $48 million for the year ended December 31, 2016 from $39 million in 2015 and $18 million in the previous year.

In October last year, the IT major agreed to acquire Butler America Aerospace Llc for $85 million in cash to strengthen its position in aerospace and defence engineering services.

In February 2016, it signed a deal with the Volvo Group to buy the latter’s external IT business. HCL also acquired UK-based Point to Point Ltd and Point to Point Products Ltd, a cloud solutions design, implementation and delivery company, in January last year.

HCL TECH OPERATES IN 32 COUNTRIES. IT REPORTED REVENUES OF $6.7 BN FOR THE 12 MONTHS ENDED DECEMBER 31, 2016.