EXL acquiring analytics firm RPM Direct for $74M

NASDAQ-listed business process solutions company ExlService Holdings Inc (EXL) is acquiring RPM Direct, LLC, which is focused on the insurance industry, including property & casualty, life and health, for $74 million, according to a press release. The deal is expected to close by June 2015 and subject to certain closing conditions.

The total amount includes $47 million in cash plus contingent cash consideration of up to $23 million and $4 million of restricted stock.

RPM specialises in analysing large consumer data sets to segment populations, predict response rates, forecast customer lifetime value, design and execute targeted, multi-channel marketing campaigns. The company maintains its own database and supports data on over 250 million consumers and 120 million US households.

Post acquisition, RPM will become a part of EXL, which has a team of over 1,500 data scientists.

“RPM possesses a unique combination of strong analytic and data management capabilities with deep industry expertise in the P&C, life and health insurance markets. With a delivery model that creates accountability by generating measurable results, clients value RPM’s acumen in combining its proprietary database with marketing analytics to optimize customer acquisition and retention while improving the profitability of their books of business," said Rohit Kapoor, vice-chairman and CEO of EXL.

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

Petsky Prunier, an investment bank, acted as the exclusive advisor while Winston & Strawn LLP worked as a legal advisor to RPM on the deal.

New York-headquartered EXL provides operations management, decision analytic and technology platforms to organisations in insurance, healthcare, banking and financial services, utilities, travel and transportation and logistics among others.

Since its inception in 1999, EXL has grown to approximately 23,000 professionals in locations throughout the US, Europe and Asia.

Last July, EXL, one of the top 10 BPO firms in India, had acquired New York-based Blue Slate Solutions, LLC, for an undisclosed amount, to expand its business process management capabilities. This was its first acquisition in almost two years. In October 2012, it acquired US-based healthcare technology solutions provider Landacorp for an undisclosed amount.

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