Wipro Set To Acquire US Mortgage Company For $75 Million

NEW DELHI -Wipro will buy American mortgage servicescompany Opus Capital MarketConsultants for $75 million (. 465 crore),bolstering its presence in the financialservices space where it has lagged rivals.India’s third-largest software servicesfirm said the all-cash deal will expand itshigh-end mortgage BPO business in theUS and will be completed in the fourthquarter of FY14. Wipro will make anupfront payment of . 310 crore, while therest will be paid over the next three years.The Opus deal is the latest in a string ofsmall acquisitions and partnerships bythe Bangalore-based company, which hasbeen looking to strengthen its financialservices muscle. The vertical contributesabout 26% to Wipro’s revenues, comparedto about 40% for the Indian softwareindustry. In October last year,Wipro appointed Shaji Farooq, who washired from rival Infosys, to head thebanking, financial services and insurancedivision as part of a senior-managementreshuffle.”This is a significant move, clearly donefor Wipro’s domain enhancement in themortgage BPO space,” said SandeepMuthangi, vice president for research atMumbai-based brokerage IIFLInstitutional Equities.