Wipro Ltd(NYSE:WIT) has announced that it has signed a definitive agreement to acquire Opus CMC (Opus Capital Markets Consultants LLC), which is a US-based provider of mortgage due diligence and risk management services for a purchase consideration of US$75 million (around Rs.465 crore) that includes a deferred earn-out component.
Founded in 2005 and headquartered in Lincolnshire, Illinois, Opus CMC provides comprehensive risk management solutions to the mortgage industry in the United States. It has over 490 employees, including over 315 loan underwriters, spread across 5 centres 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.
Manoj Punja, Senior Vice-President & Head BPO, Wipro Limited, said, "We welcome Opus CMC’s employees to the Wipro family. This acquisition will help us expand in the high-end Mortgage BPO segment, and brings differentiated capability with a platform-based risk management offering. Opus CMC has an experienced management team with a deep understanding of the emerging needs of this business. We believe Opus CMC will continue to lead with their innovative offerings and extend these capabilities to Wipro’s banking and financial services customers as well. Our vision is to leverage 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".
"We are excited about the opportunity to join hands with Wipro and continue to be a dominant player in the industry with increased range and scale of offerings for our clients. 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 & Principals, Opus CMC.
The acquisition will strengthen Wipro’s mortgage solutions and outsourcing business and complement its existing offerings in mortgage origination, servicing and secondary market. The acquisition is subject to customary closing conditions and regulatory approvals and will be completed in Q4, FY-2014.
