Digital Risk’s mix of behavior analytics and broad data sourcing have helped it grow quickly over the past year and to be selected as one of Bank Technology News’ Top Ten Tech Companies to Watch in 2013. The company has now attracted the attention of MphasiS, a Hewlett Packard company that on Monday morning announced it is buying the mortgage risk specialist.
MphasiS, a $1 billion company that sells applications, infrastructure services and business process outsourcing to global clients in financial services, insurance, manufacturing and communications, is adding Digital Risk as part of its “hyper specialization” strategy, using Digital Risk’s domain expertise in mortgage risk as a competitive differentiator.
The deal should give Digital Risk an opportunity to leverage MphasiS’ facilities to further its expansion. The two companies anticipate hiring about 500 people, some of whom may be housed in MphasiS facilities across the country. Digital Risk will maintain its brand and management structure. A spokesperson said that day-to-day operations will remain the same.
Orlando Fla.-based Digital Risk has been on a winning streak. Its yearly earnings grew to about $79 million in the past year from $3 million in 2008, and the company has doubled its headcount in the past year.
It also recently released Veritas, a tool that uses borrower, property and local real estate data to analyze how a borrower’s behavioral tendencies predict prioritization of mortgage payments versus other financial obligations. Digital Risk, which says it’s gone live with a couple of tier-one bank clients, faces competition in the mortgage risk space from companies such as FICO, CoreLogic, SAS and Wolters Kluwer.