Wipro to acquire US-based Opus CMC for Rs 465 crore

Wipro has signed a definitive agreement to acquireOpus CMC (Opus Capital Markets Consultants), a US-based mortgage, due diligence and risk management service provider for Rs 465 crore ($75 million) that includes a deferred earn-out component. The acquisition will strengthen Wipro's mortgage solutions and outsourcing business and complement its existing offerings in mortgage origination, servicing and secondary market.

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 centers in the US.

Opus CMC offers operational and loan level due diligence, valuation support, forensic analysis, and advisory services on all classes of mortgage products, residential and commercial, ranging from re-underwriting whole loans to collateral reviews of securitized pools. Its customers include several of the top global banks, mortgage conduits, mortgage investors, and independent mortgage originators.

"This acquisition will help us expand in the high-end mortgage BPO segment, and brings differentiated capability with a platform-based risk management offering. Wipro's offerings with Opus CMC's capabilities and knowledge base to create an end-to-end offering for all mortgage players, with a greater degree of automation and application of analytics," said Manoj Punja, senior VP and head of BPO in Wipro.

"Our industry is at a pivotal point with the introduction of new mortgage regulations driven by the CFPB (Consumer Financial Protection Bureau) and government agencies. Wipro and Opus CMC will jointly assist our clients in navigating this challenging and changing business environment and help build reliable outcomes in mortgage origination and secondary market operations," said Joseph Andrea and Jennifer LaBud, co-founders and principals in Opus CMC.

The acquisition is subject to customary closing conditions and regulatory approvals and will be completed in Q4, FY-2014.Portico Capital Securities is the financial advisor to Opus CMC for this transaction.