Cognizant Tuesday announced the signing of a definitive agreement under which the company will acquire CoreLogic Global Services Private Limited (CoreLogic India), the India-based captive operations of CoreLogic.
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.
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, under which Cognizant will provide a range of services to CoreLogic globally.
Together, the companies expect 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.
CoreLogic India, whose approximately 4,000 associates will become employees of Cognizant at closing, provides capabilities in software product development, analytical modeling, domain-centric back-office services, and technology support to CoreLogic and its customers, primarily in the U.S. mortgage and real estate markets. CoreLogic India, founded in 1994, maintains offices in Bangalore, Hyderabad, and Mangalore.
As one of the largest real estate information and analytics provider in the U.S. market, CoreLogic brings deep relationships in data, analytics, and business and information services capabilities.
According to Anand Nallathambi, President and CEO of CoreLogic, CoreLogic expects the partnership to enable reduced time-to-market, expanded service delivery, and enhanced productivity, operational efficiency, and quality through Cognizant’s enhanced capabilities, global delivery platforms, and ongoing access to highly trained resources.
Francisco D’Souza, President and CEO of Cognizant, said CoreLogic’s deep capabilities in domain-centric back-office services, software product development, and analytical modeling, combined with Cognizant’s domain-aligned technology and business process expertise, will create greater value for the company’s mutual financial services clients and enable the delivery of sophisticated analytics and next-generation business process solutions to market.
CoreLogic has built among the largest and most comprehensive U.S. real estate, mortgage application, fraud, and loan performance databases with public, contributory, and proprietary data covering approximately 99 percent of U.S. residential real estate property records, 80 percent of mortgage applications, and 85 percent of mortgage loan servicing performance information.
With over 50 delivery centers worldwide and approximately 111,000 employees as of March 31, 2011, Cognizant is ranked among the top performing and fastest growing companies in the world.