Wipro rose 0.77% to Rs 485.20 at 9:17 IST on BSE after the firm said it has signed a definitive agreement to acquire Opus CMC, a leading US-based provider of mortgage due diligence & risk management services for purchase consideration of $75 million
The announcement was made after market hours on Monday, 2 December 2013.
Meanwhile, the S&P BSE Sensex was down 57.45 points or 0.27% at 20,840.56.
On BSE, 2,185 shares were traded in the counter as against average daily volume of 2.30 lakh shares in the past two weeks.
The stock hit a high of Rs 484.70 and a low of Rs 481.85 so far during the day.
Wipro said that it has signed a definitive agreement to acquire Opus CMC (Opus Capital Markets Consultants LLC), one of the leading US-based providers of mortgage due diligence and risk management services for a purchase consideration of $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 United States. It has over 490 employees, including over 315 loan underwriters, spread across 5 centers in the US, Wipro said in a statement.
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, the company added.
"We welcome Opus CMC's employees to the Wipro family," said Manoj Punja, Senior Vice President and Head - BPO, Wipro. "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 and Principals, Opus CMC.
The acquisition is subject to customary closing conditions and regulatory approvals and will be completed in Q4 March 2014, Wipro said.
Wipro reported 28% growth in consolidated net profit from continuing operations to Rs 1932 crore on 19% growth in revenue from continuing operations at Rs 10992 crore in Q2 September 2013 over Q2 September 2012.
Wipro provides comprehensive IT solutions and services, including systems integration, Information Systems outsourcing, IT enabled services, package implementation, software application development and maintenance, and research and development services to corporations globally
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