/ciol/media/agency_attachments/c0E28gS06GM3VmrXNw5G.png)
Follow UsNEW DELHI, INDIA: Global financial services consulting firm, Headstrong has acquired the Lydian Data services, a privately owned diversified financial services firm.
Lydian Data Services provides Business Process Outsourcing, business connectivity and transaction management solutions to mortgage originators, secondary market conduits and investors. The company specialises in mortgage data connectivity solutions, mortgage data management, core banking data integration and loan transfer systems.
The company has processed mortgage volumes of over $150 billion over the last four years.
Following the acquisition, whose financial terms were not disclosed, Lydian Data Services is now Headstrong Business Services. The company will be overseen by Rakesh Mittal, Senior Vice President, Headstrong. However, the present CEO of Lydian, William Decker, will remain in chair.
Speaking to CIOL, Harsh Singh Lohit, Managing Director, Headstrong India, said the strategic acquisition of Lydian Data services, is part of Head Strong multi pronged strategy to achieve $500 million in revenues by 2011.
“This acquisition is value based acquisition. We are not buying a company. We are buying competence. With acquisition of LDS and its platforms, Headstrong is now positioned as the premier financial services consulting firm to offer a full suite of services from consulting and implementation to mortgage, processing to its global clientele”, said Lohit.
Lohit added with this acquisition, Headstrong becomes the number one processor for correspondent fulfilment services.
“Lydian award winning processing platform is used by some of the largest investment banks, financial institutions and government sponsored enterprises” said Lohit.
On the timing of the acquisition, Lohit added that though the financial industry was witnessing a slow down, the current uncertain times also presented a unique opportunity for Headstrong to be a leader in the field
"Even though cost cutting can help company in some way to see through the tough phase, but it is only through strategic acquisitions that would help companies in the long run.
"You need to take a long term view. Recession will not be here for ever. May be twelve months or twenty four months. Once that is over, you need have even assets that will help you to become leaders in the market," added Lohit.
Lohit added that even in depressed market, at least eleven million mortgages will be processed in 2009 making it an estimated $9 billion USD processing market.
"With the platform and expertise we have acquired, this is a significant opportunity for Headstrong," said Lohit adding that company was also on look out for a Remote Infrastructure Management company to augment its service portfolio.
Headstrong had merged with an Indian firm Techspan in 2003 for deal worth over $20 million. The combined entity at that time had revenues of over $100 million, employing over 1,100 people. Today Headstrong is $200 million company with 3000 employees. 1600 of those are based out of India. The company has seventy customers, which includes twenty of the top investment banks worldwide. The company doesn’t serve the Indian market as present, though has plans to enter the market in future
Headstrong had in the recent past been actively talking to several players in country for a potential buy-out. The company had a chest of $100 million ready for pursuing its acquisition strategy in India
Lohit added following the acquisition, both LDS and Headstrong have a unique opportunity to leverage each other markets, which hitherto were unavailable to both of them.
“ While this strengthen Headstrong’s US operations through the addition of processing centres in Atlanta, Georgia and Boca Raton, Florida, LDS can leverages Headstrong’s strong presence in UK and Asia allows both of us to expand our platform and services reach thereby bringing to both market unified and systemic mortgage processes,” he added.