Allsec Technologies Ltd is set to acquire US-based mortgage servicing business company Retreat Capital Management Inc to expand its business to new verticals. The deal size has not been disclosed.
R Jagadish, co-founder and CEO, Allsec Technologies, said the company had signed an agreement to acquire 100 per cent shares in the US firm and was expected to close the deal in next 15 days.
The acquisition would be completed in four phase over the next four years. During the initial phase, the company would acquire 66 per cent equity, almost two-third of the total shares.
"The investment will be finalized on different parameters, including 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, asset managers and investors. The company, established in 2008, is based in Lake Forest, California, and is a minority-owned business.
The operations of Retreat Capital would continue as a separate business entity even after the acquisition. The current strength of Allsec would support the new company through India, Philippines and the US, said Jagadish.
The board of directors of Allsec Technologies in a meeting held on January 31 approved the proposal for acquiring Retreat.
Chennai-based Allsec provides outsourced solutions in customer engagement, sales and retention and quality assurance for businesses across banking, financial services and insurance (BFSI), telecommunication, retail, healthcare, energy and utilities and technology.
The company has delivery centres in Chennai, Bangalore, Mumbai, Delhi, Trichy, Hyderabad, Pune and Kolkata apart from subsidiaries - Allsectech Inc, US, and Allsectech Manila Inc, Philippines.
