The purchase price will consist of cash payment of approximately $50 million (about Rs 240 crore), 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.
Domain-centric
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 US mortgage and real estate markets.
CoreLogic India, founded in 1994, maintains offices in Bangalore, Hyderabad, and Mangalore.
Of the 4,000 employees about 2,000 are in Bangalore,1,200 in Hyderabad and about 800 in Mangalore.
“The acquisition will help us exploit the IT and BPO synergy for next generation solutions,” said Cognizant President and MD Global Delivery R Chandrasekaran.
“Combining CoreLogic’s domain-centric back-office services, software product development, and analytical modeling with Cognizant’s domain-aligned technology and business process expertise, helps create greater value for Cognizant’s existing financial services clients and enables the company to bring sophisticated analytics and next-generation business process solutions to market.”
Added Cognizant President and Chief Executive Officer (CEO) Francisco D’Souza, “This acquisition continues our long-standing strategy of acquiring for capabilities, and the strategic relationship with CoreLogic enables us to better serve the rapidly evolving mortgage industry globally.”