Cognizant to acquire CoreLogic India for $50 million
New Jersey based Cognizant Technology Solutions is all set to acquire India based captive operations of CoreLogic Inc (CoreLogic Global Services Private Ltd.). The acquisition will help Cognizant strengthen its offering of end-to-end mortgage services, and also enable new business solution for mortgage industry. According to the agreement, the purchase price will consist of a cash payment of approximately $50 million, plus adjustments for working capital and other charges or credits which will be determined at closing. The deal which is being funded from Cognizant Technologies Ltd’s cash reserve is expected to close in August 2011. A cash rich company, Cognizant is all set to overtake Wipro to become the third largest IT player in India.
As part of the transaction, CoreLogic and Cognizant will enter into a services agreement with a minimum revenue commitment of $324 million, plus applicable inflation adjustments, over five years, with various renewal and extension rights. Further CoreLogic India's 4,000 associates will become employees of Cognizant. Together, the companies aim to provide end-to-end business process and analytics solutions across the mortgage value chain, from loan origination, escrow, title and closing services through secondary markets, loan administration, and loan default management.