HCL Acquires Capital Stream for $40 Million
IT News Online Staff
2008-02-20
HCL Technologies Ltd. announced that it has acquired Capital Stream Inc., a U.S.-based company providing lending automation solutions, for $40 million in cash. Capital Stream provides end-to-end lending and straight through processing solutions to commercial banks and finance companies in North America, including Prospecting and Sales, Credit Analysis, Due Diligence, Documentation and Portfolio Monitoring.
HCL said the acquisition of Capital Stream enhances its ability to provide end-to-end solutions through product and multi-service delivery capability to commercial and retail financial institutions. FinanceCenter, Capital Stream's flagship product, is a multi-tier, Web-based application for the automation of business and commercial lending institutions.
Capital Stream has helped leading financial institutions to improve relationships, streamline operations, reduce risk and achieve revenue growth. The company's solutions accelerate the origination and management of commercial credit relations to enable mid-market and small business lending, equipment finance and commercial lending operations to double or triple transaction throughput with no increase in headcount.
HCL said its acquisition of Capital Stream provides a number of synergies, benefits and opportunities, including:
- The addition of a focused product portfolio to HCL's multi-service capability will enable the company to provide commercial banks and other financial institutions end-to-end solutions globally, with reduced implementation time.
- The offerings from Capital Stream complements HCL's technology capabilities in financial services.
V. Ramkrishna, Corporate Vice President, Head Mergers and Acquisitions, IT Services, said, " This acquisition is part of a well structured M&A strategy to fulfill HCL's aspirations to be a global leader in selected industry verticals by using acquisition to either bridge gaps or enhance the capabilities in our service offerings."
S. Premkumar, Corporate Officer and Global Head - Financial Services, HCL Technologies Ltd., said, "Capital Stream has the unique blend of a superior product and technology in the commercial banking space, a team that is as committed to value delivery to its customers as HCL and above all, a portfolio that lends itself to offer integrated solutions. This will enhance our capability in the Financial Services sector to deliver large scale enterprise solutions. The modular architecture would also help HCL to localize the platforms across various global financial centers."
Kevin Riegelsberger, CEO of Capital Stream, said, "We are delighted to join an organization such as HCL with its clearly differentiated strategy and focus on delivering value to the customer. We see this as a great opportunity for Capital Stream to leverage HCL's global reach and to cross sell our product portfolio with their multi-service offerings. At the same time, Capital Stream clients gain access to HCL's world-class business process and technology skills and global resources."
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