ExlService Holdings Inc to acquire RPM Direct for $47 million

Mumbai: ExlService Holdings Inc., the Nasdaq-listed business process outsourcing and analytics firm, on Wednesday announced the acquisition of US-based RPM Direct Llc, an analytics firm focused on the insurance industry.

The merger consideration for RPM is $47 million in cash plus contingent cash consideration of up to $23 million and $4 million of restricted stock, Exl said in a statement. The acquisition is expected to close in the first quarter of 2015, subject to the fulfilment of certain closing conditions and is expected to be accretive to adjusted earnings per share.

RPM will become part of the Exl Analytics group of over 1,500 data scientists.

“Their (Exl’s) database management and digital marketing capabilities complement Exl’s own sophisticated analytical modelling and reporting offerings, and will help us offer an end-to-end marketing analytics solution. The acquisition of RPM will boost the talent pool and scale of EXL Analytics and enhance our ability to develop analytics products and drive non-linear revenue growth,” said Pavan Bagai, president and chief operating officer, Exl.

RPM maintains its own database and supports data on over 250 million consumers and 120 million US households. RPM employs proprietary predictive analytics and domain-specific pattern recognition algorithms to deliver results through a flexible, on-demand service model.

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