August 22, 2011
Acquisition adds business process outsourcing (BPO) capabilities
for residential mortgage and commercial real estate
for residential mortgage and commercial real estate
NEW YORK; Aug. 22, 2011 – Accenture (NYSE: ACN) has agreed to acquire Zenta, a leading provider of residential and commercial mortgage processing services in the United States. The acquisition will significantly expand Accenture’s ability to help lenders, servicers and real estate investment trusts (REITS) retool and streamline their operations, enhance the customer experience, and improve profitability in response to new market conditions, while enhancing Accenture’s BPO portfolio. Terms of the transaction were not disclosed.
In conjunction with the agreement, Accenture is launching Accenture Credit Services, a full-service consulting, technology and BPO capability that will expand its support for institutions in the residential mortgage, commercial real estate, leasing and automotive finance industries. Zenta’s mortgage processing capabilities will be a key component of the service.
“The wave of regulations and a changing credit environment are redefining the competitive landscape of the mortgage industry,” said Terry Moore, global managing director of Accenture Credit Services. “In the residential mortgage business, low customer satisfaction, rising fulfillment costs, and falling pull-through rates -- coupled with slower refinancing and purchase activity -- are undercutting profitability. On the servicing side, regulatory changes are forcing operational transformation.
“This acquisition will help our clients address these challenges by combining Zenta’s resources and expertise in mortgage processing with Accenture’s long track record helping financial institutions design and execute complex, large-scale business transformations. Zenta’s white-glove approach to mortgage processing will serve our clients well.”
Headquartered in Dallas, Texas, Zenta is one of the top three providers of mortgage processing services in the U.S., serving four of the five largest U.S. banks. Zenta’s approximately 3,700 employees are expected to join Accenture. Its services include residential and commercial mortgage origination and servicing, default management, real estate portfolio management, and accounts receivable management. Zenta is also among the largest providers of real estate accounting and capital market analytics to U.S. REITS, institutional investment managers, owners and operators, and investment banks. The company also provides a variety of other credit related services.
“As part of Accenture, we can offer our clients greater scale, a broader range of services and world leading business process expertise to help them meet new market demands,” Henry Hortenstine, CEO of Zenta. “We share a common goal of providing the highest quality service and measurable business value to clients, which makes this an ideal match.”
Accenture’s acquisition of Zenta is subject to closing requirements.
“Mortgage lenders are facing rising costs from new risk management systems, regulatory controls and high internal fixed loan processing costs,” said Craig Focardi, senior research director at TowerGroup, a Corporate Executive Board company. “Financial institutions need to make major business process reengineering changes in their loan origination and servicing / loss mitigation operations. Having strong business partners with deep credit domain expertise at the strategic level and in BPO will be critical.”
Accenture Credit Services offers consulting, process reengineering, systems integration and management, and business process outsourcing services for residential mortgage, commercial real estate, leasing and automotive finance lenders and servicers looking to transform and industrialize their operations. The services are designed to bring significant customer service, efficiency, quality, and profitability improvements to Accenture’s clients’ lending business. Accenture Credit Services serves more than 80 major lending institutions worldwide.
Accenture is a global management consulting, technology services and outsourcing company, with more than 223,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.6 billion for the fiscal year ended Aug. 31, 2010. Its home page is www.accenture.com.
Founded in 2000, Zenta is a world-class knowledge process outsourcing (KPO) and business process outsourcing (BPO) company, offering a full range of residential mortgage fulfillment and loan servicing support, commercial real estate, capital market analytics, commercial loan underwriting and servicing support, finance and accounting, asset management, collections and contact center services. Through deep domain expertise and a focus on process management, Zenta provides clients with increased speed in execution of core business processes, flexible scale, and cost savings associated with superior efficiency and quality. The company currently employs more than 3,700 resources in the U.S., India and the Philippines. For more information about the Company, visit www.zenta.com.
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These include, without limitation, risks that: the company and Zenta will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties’ ability to satisfy certain closing conditions; the transaction might not achieve the anticipated benefits for the company; the company’s results of operations could be adversely affected by negative or uncertain economic or geopolitical conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; the company’s results of operations and ability to grow could be materially negatively affected if the company cannot adapt and expand its services and solutions in response to changes in technology and client demand; the consulting and outsourcing markets are highly competitive and the company might not be able to compete effectively; work with government clients exposes the company to additional risks inherent in the government contracting environment, including risks related to governmental budget and debt constraints; clients may not be satisfied with the company’s services; results of operations could be materially adversely affected if clients terminate their contracts with the company; outsourcing services are a significant part of the company’s business and subject the company to additional operational and financial risk; results of operations could materially suffer if the company is not able to obtain favorable pricing; if the company is unable to keep its supply of skills and resources in balance with client demand around the world, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; the company’s business could be materially adversely affected if it incurs legal liability in connection with providing its services and solutions; if the company’s pricing estimates do not accurately anticipate the cost and complexity of performing work, then the company’s contracts could be unprofitable; many of the company’s contracts include performance payments that link some of the company’s fees to the attainment of performance or business targets and this could increase the variability of the company’s revenues and margins; the company’s ability to attract and retain business may depend on its reputation in the marketplace; the company’s alliance relationships may not be successful or may change, which could adversely affect the company’s results of operations; the company’s Global Delivery Network is increasingly concentrated in India and the Philippines, which may expose it to operational risks; as a result of the company’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; revenues, revenue growth and earnings in U.S. dollars may be lower if the U.S. dollar strengthens against other currencies, particularly the Euro and British pound; the company could have liability or the company’s reputation could be damaged if the company fails to protect client data and company data or information systems as obligated by law or contract or if the company’s information systems are breached; the company could be subject to liabilities or damage to its relationships with clients if subcontractors or the third parties with whom the company partners cannot meet their commitments on time or at all; the company’s services or solutions could infringe upon the intellectual property rights of others or the company might lose its ability to utilize the intellectual property of others; the company has only a limited ability to protect its intellectual property rights, which are important to the company’s success; changes in the company’s level of taxes, and audits, investigations and tax proceedings, could have a material adverse effect on the company’s results of operations and financial condition; the company’s profitability could suffer if its cost-management strategies are unsuccessful; if the company is unable to collect its receivables or unbilled services, the company’s results of operations, financial condition and cash flows could be adversely affected; the company may be subject to criticism, negative publicity and legislative or regulatory action related to its incorporation in Ireland; if the company is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; the company may not be successful at identifying, acquiring or integrating other businesses; consolidation in the industries the company serves could adversely affect its business; the company’s share price could fluctuate and be difficult to predict; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.
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