Accenture (NYSE:ACN), a global management consulting and outsourcing firm, plans to buy privately-held mortgage processing services company Zenta in a move to retool and streamline its services and customer operations in the mortgage lending industry.
The company said in a news statement a spate of new regulations and a changing credit environment is redefining the competitive landscape in the mortgage industry.
"This acquisition will help address these challenges by combining Zenta's resources and expertise in mortgage processing with Accenture's track record helping financial institutions design and execute complex, large-scale business transformations,” said Accenture’s managing director, Terry Moore.
The companies did not disclose financials or terms of the transaction.
The deal will add business process outsourcing capabilities for residential mortgage and commercial real estate industries, while Zenta’s 3,700 employees are expected to join Accenture.
Accenture, in combination to the deal, plans to launch Accenture Credit Services. It will be a full-service consulting, technology with business process outsourcing ability to expand support for institutions in the residential mortgage, commercial real estate and automotive finance industries.
The company also said Zenta's mortgage processing capabilities will be a key component of the service.
Zenta, which is based in Dallas, Texas, provides residential and commercial mortgage origination and servicing as well as default management.
"As part of Accenture, we can offer our clients greater scale, a broader range of services and business process expertise to help them meet new market demands," said Henry Hortenstine Chief Executive of Zenta said.
The deal is subject to closing conditions and regulatory approval.
Accenture’s stocks shot up 98 cents, 2.07% to $48.42 Monday afternoon on the New York Stock Exchange.