Page 170 - BWM Dec 2012

170 | Business World Magazine | December 2012
In a deal valued at more than $175 million, Digital Risk LLC of
Maitland, Florida, will be acquired by MphasiS, an India-based
affiliate of Hewlett Packard. Digital Risk is a developer of
software and IT solutions that serve in home lending/mortgage
practices. Since its founding in 2005, the company has
generated annual revenues in excess of $125 million by serving
an expanding client base of insurers and investment banks.
Having recently hired several hundred people in a campaign
that would reportedly bring 1,000 new personnel into the
company, the acquisition by Mphasis has prompted concern
that the company might now relocate to India. In a statement
regarding the transaction, CEO Peter Kassabov dismissed such
claims saying the deal is essential to MphasiS’ expansion plans
and suggested that the company intends to bring more jobs to
the United States. He also said while it is possible some basic
functions, such as data entry, might eventually be outsourced
overseas, the critical core of work performed by Digital Risk’s
staff will continue from America.
No Risk of Relocation
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