Global IT Company Cognizant Announces Acquisition of Belcan for $1.3bn
Cognizant Technologies, a leading IT company, has revealed its plans to acquire Belcan, a digital engineering firm, for $1.3bn in a cash and stock deal. The acquisition is aimed at enhancing Cognizant’s presence in the rapidly growing engineering research and development services market.
Cognizant, a multinational company founded in India over 30 years ago, is known for its IT services and consulting expertise. With a revenue of nearly $20bn and a workforce of around 350,000 employees worldwide, the company is listed on Nasdaq.
The purchase of Belcan is expected to bolster Cognizant’s engineering research and development capabilities, particularly in areas such as internet of things (IoT) and digital engineering. The acquisition will also enable Cognizant to expand its reach in the aerospace and defense industry, leveraging Belcan’s team of over 6,500 engineers and technical consultants.
CEO Ravi Kumar S expressed his confidence in the acquisition, stating that it will solidify Cognizant’s position in the growing ER&D services market. He emphasized that Belcan’s expertise in engineering, especially in the aerospace and defense sector, will complement Cognizant’s digital engineering capabilities, allowing clients access to advanced AI, cloud, and data technologies.
Furthermore, the acquisition is expected to benefit both Belcan’s clients, who will gain access to Cognizant’s tech services across various sectors, and Cognizant’s clients, who will benefit from Belcan’s engineering skills. The deal is projected to contribute over $800m in revenue annually following its completion.
In addition to the Belcan acquisition, Cognizant has previously made significant acquisitions to expand its presence in Ireland. The company acquired Meritsoft, a financial services software company based in Dublin, and Zenith Technologies, a life sciences tech company located in Cork. These acquisitions align with Cognizant’s goal of creating 320 jobs in its life sciences division in Ireland over a three-year period.
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