Ocwen Financial to spin off business process outsourcing operation

By Lisa Kerner

Charlotte, N.C., Dec. 19 - Ocwen Financial Corp. said it will separate Ocwen Solutions in a tax-free spinoff to Ocwen shareholders.

The spinoff is expected to be completed by the second quarter of 2009, pending regulatory approvals and the effectiveness of a registration statement, a company news release said.

Ocwen Solutions is Ocwen's knowledge-based business process outsourcing operation.

"As an independent company, Ocwen Solutions will be better positioned to pursue business opportunities with other servicers," Ocwen chairman and chief executive officer William C. Erbey said in the release.

"Another advantage is that Ocwen Solutions will have the option of offering its stock to potential acquisition targets," Erbey added.

According to Erbey, Ocwen Solutions had less than $24 million in tangible assets at Sept. 30 but generated about $163 million of trailing-12-months revenue.

Based in West Palm Beach, Fla., Ocwen is an asset manager and business process outsourcing provider to the financial services industry that specializes in loan servicing, mortgage fulfillment and receivables management services.

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