MphasiS to acquire Digital Risk LLC

MphasiS has announced a definitive agreement to acquire USA based Digital Risk LLC. Digital Risk is an independent providers of Risk, Compliance and Transaction Management solutions to the United States mortgage market. The acquisition is an all cash deal valued at USD$ 175 million 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.

The transaction is currently expected to close by January 31, 2013 subject to regulatory approvals and other customary closing conditions. Upon completion of the transaction, Digital Risk will operate as a standalone business unit retaining its brand identity. Digital Risk’s founders will continue to lead the company, with Peter Kassabov reporting to Ganesh Ayyar, CEO MphasiS. Digital Risk’s, management team and employees will remain with the company and continue serving their customers. MphasiS, has plans to expand its footprint in United States creating up to 500 new jobs in the near future