MphasiS to acquire US data analytics company Digital Risk for Rs1,100 crore

Bangalore-based MphasiS, today said that it is acquiring US data analytics company Digital Risk, for $200 million (Rs1,100 crore).

MphasiS, a unit of Hewlett-Packard, said that the deal value includes $25-30 million in milestone-linked payments staggered over the next two -  three years.

Founded in 2005, Orlando, Florida-based Digital Risk describes itself as the largest independent provider of risk, compliance and transaction management solutions for the mortgage market.

Its Making Mortgages Safe software evaluates and monitors mortgage exposure at the loan level to provide insight to credit, fraud and operations risk to predict and to manage loan performance.

Its patent-pending data analytics software platform called Veritas, provides information and analysis at the most granular level – the borrower, property and market – as well as at the portfolio level, to measure credit and operations risk.

Digital Risk is expected to generate revenues of $127 million in CY 2012. The company has grown at a  revenue CAGR of 70 per cent in the last 3 years.

''For the past 15 months or so, we have been looking for a specialised company in banking and capital markets space and Digital Risk presented the best opportunity," said Ganesh Ayyar, CEO of MphasiS, which over the past year or two, has been focusing more on catering to the financial services industry.

The transaction is expected to close by 31 January 2013 and upon closing,  MphasiS said, adding that Digital Risk's founders led by Peter Kassabov, chairman and CEO, will continue to lead the company.