Allsec Technologies Ltd, a Chennai-based Business Process Outsourcing (BPO) service provider, is set to acquire a US-based mortgage servicing business company, Retreat Capital Management Inc, to expand into new verticals. The deal size was not disclosed.
R Jagadish, co-founder and CEO, Allsec Technologies Ltd said the company has signed an agreement to acquire 100 per cent of the US firm and is expected to close the deal in the next 15 days.
He added, the acquisition will be completed in four phases over the next four years. During the initial phase, the company will acquire 66 per cent of the equity, almost two-third of the total shares.
“Investment will be finalised on different parameters, including that based on company performance and it will be funded through internal accruals,” he added.
Retreat Capital Management is an end-to-end provider of loss mitigation, portfolio management and management consulting services for mortgage lenders, servicers, asset managers and investors.
The company was established in 2008, and is based in Lake Forest, California, and is a minority owned business. The operations of Retreat Capital Management would be continued as a seperate business entity even after acquisition.
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The present strength of Allsec Technologies would support the new company through India, Philippines and US, and the acquisition would support the BPO to strengthen its operations in the new verticals, said Jagadish.
The Board of Directors of Allsec Technologies in a meeting held on January 31 approved the proposal for acquiring Retreat Capital Management Inc., The company would proceed with the necessary formalities to give effect to the proposal for acquisition, according to company’s announcement to stock exchange.
The company has delivery centres in various parts of the country including Chennai, Bangalore, Mumbai, Delhi, Trichy, Hyderabad, Pune and Kolkata and subsidiaries including Allsectech Inc, USA and Allsectech Manila Inc, Philippines.