HCL Technologies Ltd, India’s fourth-largest software services exporter, has agreed to acquire US-based Urban Fulfillment Services LLC for up to $30 million (Rs 193 crore) in cash to boost its mortgage business process outsourcing business.
The deal amount includes contingent payments subject to certain financial milestones, HCL Tech said in a stock-exchange filing. The acquisition is likely to be completed by June, it said.
Urban Fulfillment provides mortgage business process and fulfillment services to customers. It has 350 employees in the US and is undergoing restructuring.
The target company posted revenue of $48 million for the financial year ended 31 December 2016, up from $39 million the year before and $18 million in 2014.
HCL Tech, founded by billionaire Shiv Nadar, has snapped up several overseas assets as Indian software services exporters seek to diversify their offerings beyond their traditional outsourcing business. US President Donald Trump’s protectionist rhetoric and tightening of visa rules are also prompting Indian IT exporters to hire more US workers or acquire US companies.
In October last year, HCL agreed to acquire US-based engineering and design services provider Butler America Aerospace LLC for $85 million.
HCL’s bigger rivals, No. 2 Infosys Ltd and No. 3 Wipro Ltd, have also struck acquisitions in the US over the past year or so. Bengaluru-based Wipro, in October last year, said it had agreed to acquire US-based cloud services company Appirio Inc. for $500 million.
HCL has also struck a number of other acquisitions in other countries. Last year, it agreed to acquire the IT business of Mumbai-based engineering services provider Geometric in an all-stock deal valued around Rs 1,300 crore and bought UK-based Point to Point Ltd and Point to Point Products Ltd for around $11 million.