BENGALURU: Cognizant has made its second-biggest
acquisition
after it bought US engineering R&D services firm
Belcan
for $1.3 billion, which comprises $1.1 billion in cash and 1.4 million Cognizant shares valued at $97 million based on its closing share price on Friday. Ten years ago, Cognizant acquired healthcare solutions firm TriZetto for $2.7 billion.
The Belcan acquisition is expected to bolster Cognizant’s ER&D capabilities, similar to French IT firm
Capgemini
expanding its ER&D playbook by acquiring
Altran
for $4 billion in 2020.
Sources told TOI that Cognizant’s swift M&A comes at a time when Infosys has narrowed its lead over Cognizant. But with this acquisition, the gap between the two companies widens. Cognizant is bulking up revenues with the Belcan deal that would contribute $800 million on an annualised basis and it will add over 6,500 engineers and technical consultants.
