SAO PAULO--(EON: Enhanced Online News)--Accenture (NYSE:ACN) has completed its acquisition of a majority stake in Vivere Brasil Serviços e Soluções S.A. (Vivere Brasil), a leading mortgage-processing technology company. The acquisition will enable Accenture to expand its mortgage-services capabilities and help banks increase their efficiencies and capacity for processing loans in Brazil’s rapidly growing mortgage market.
“Lenders that use advanced technology in combination with outsourced mortgage-processing can gain a major strategic advantage”
Accenture now has majority ownership and management responsibility for Vivere Brasil. BTG Pactual, a leading Latin American investment bank, and Vivere Brasil’s founders have retained a minority stake in the company. Accenture announced the agreement to acquire its stake on September 16, 2013.
Founded in 2006, Vivere Brasil has developed a comprehensive mortgage origination and portfolio administration software platform. The technology is used by several leading Brazilian institutions.
“Our goal is to be a leading provider of mortgage-processing services in Brazil,” said Luis Simões, the newly appointed head of Vivere Brasil and a former Accenture managing director. “By investing in and developing Vivere Brasil’s industry-leading technology, and combining it with Accenture Credit Services’ proven business process outsourcing capabilities, we can offer greater mortgage-processing capacity, efficiencies, and quality-controls to banks in this fast-growing market.”
Mortgage loans in Brazil represent 7.4 percent of gross domestic product (GDP), according to central bank estimates (compared with 10 percent in China and 81 percent in the United States). They are expected to grow to 10 percent of GDP by 2015, according to the country’s mortgage banking association.
“Lenders that use advanced technology in combination with outsourced mortgage-processing can gain a major strategic advantage,” said Terry Moore, global managing director of Accenture Credit Services. “It allows them to scale up quickly to capture market share on an efficient platform with a variable cost-structure. The model is already proving itself in the U.S., where the housing market is on the rise, and where profitability and higher quality-controls and service expectations are the driving factors.”
Accenture has significantly expanded its global mortgage industry capabilities since its 2011 launch of Accenture Credit Services and through several strategic acquisitions. In September, Accenture announced that it has acquired Mortgage Cadence, an advanced mortgage loan origination software provider in the U.S. market. In 2011, it acquired a leading provider of residential and commercial mortgage-processing services in the U.S., formerly known as Zenta.
Accenture is a global management consulting, technology services and outsourcing company, with approximately 275,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$28.6 billion for the fiscal year ended Aug. 31, 2013. Its home page is www.accenture.com.
Accenture Credit Services is a business service within Accenture’s financial services operating group that provides consulting, technology and outsourcing services to institutions in the residential mortgage, commercial real estate, leasing and automotive finance industries. It is a leading provider of mortgage processing services in the U.S. and serves more than 100 major lending institutions worldwide.
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook” and similar expressions are used to identify these forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These include, without limitation, risks that: the transaction might not achieve the anticipated benefits for the company; the company’s results of operations could be adversely affected by volatile, negative or uncertain economic conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; the company’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions, and a significant reduction in such demand could materially affect the company’s results of operations; if the company is unable to keep its supply of skills and resources in balance with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; the markets in which the company competes are highly competitive, and the company might not be able to compete effectively; the company could have liability or the company’s reputation could be damaged if the company fails to protect client and/or company data or information systems as obligated by law or contract or if the company’s information systems are breached; the company’s results of operations and ability to grow could be materially negatively affected if the company cannot adapt and expand its services and solutions in response to ongoing changes in technology and offerings by new entrants; as a result of the company’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; the company’s Global Delivery Network is increasingly concentrated in India and the Philippines, which may expose it to operational risks; the company’s results of operations could materially suffer if the company is not able to obtain sufficient pricing to enable it to meet its profitability expectations; if the company’s pricing estimates do not accurately anticipate the cost, risk and complexity of the company performing its work or third parties upon whom it relies do not meet their commitments, then the company’s contracts could have delivery inefficiencies and be unprofitable; the company’s work with government clients exposes the company to additional risks inherent in the government contracting environment; the company’s business could be materially adversely affected if the company incurs legal liability; the company’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; the company’s alliance relationships may not be successful or may change, which could adversely affect the company’s results of operations; outsourcing services and the continued expansion of the company’s other services and solutions into new areas subject the company to different operational risks than its consulting and systems integration services; the company’s services or solutions could infringe upon the intellectual property rights of others or the company might lose its ability to utilize the intellectual property of others; if the company is unable to protect its intellectual property rights from unauthorized use or infringement by third parties, its business could be adversely affected; the company’s ability to attract and retain business and employees may depend on its reputation in the marketplace; the company might not be successful at identifying, acquiring or integrating businesses or entering into joint ventures; the company’s profitability could suffer if its cost-management strategies are unsuccessful, and the company may not be able to improve its profitability through improvements to cost-management to the degree it has done in the past; many of the company’s contracts include payments that link some of its fees to the attainment of performance or business targets and/or require the company to meet specific service levels, which could increase the variability of the company’s revenues and impact its margins; changes in the company’s level of taxes, and audits, investigations and tax proceedings, or changes in the company’s treatment as an Irish company, could have a material adverse effect on the company’s results of operations and financial condition; if the company is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; if the company is unable to collect its receivables or unbilled services, the company’s results of operations, financial condition and cash flows could be adversely affected; the company’s share price and results of operations could fluctuate and be difficult to predict; the company’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; any changes to the estimates and assumptions that the company makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; the company may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.