Mortgage technology company Altisource Portfolio Solutions has agreed to sell its financial services business to Transworld Systems (TSI) for $44 million.
TSI is a provider of loan servicing, accounts-receivable management, healthcare revenue cycle services.
As part of the deal, TSI will acquire Altisource Financial Services, including Nationwide Credit, which provides call center outsourcing, customer relationship management, and collections for the mortgage servicing, credit, insurance, utility and hospitality industries. Nationwide Credit has about 2,300 employees and operations centers in the United States, India and the Philippines.
This isn’t the first time in recent months the company has narrowed its focus. In November, Altisource announced that it would its buy-renovate-sell-lease business. Altisource CEO William B. Shepro said the sale to TSI was part of the same ongoing effort to streamline the company.
“The anticipated sale of our financial services business furthers this objective and supports the continued deleveraging of Altisource’s balance sheet,” he said.
“The acquisition of the Altisource Financial Services business broadens TSI’s customer base, expands our offerings into customer relationship management, and grows our global operations in India and the Philippines,” said Joseph Laughlin, CEO of TSI. “This carve-out is a perfect example of our strategy to leverage acquisitions to add new technological capabilities while improving scale in our core businesses. We look forward to partnering with the Altisource management team to affect a smooth transition, and we welcome the Altisource Financial Services customers and employees to the TSI family.
The deal is expected to close in the third quarter of this year.