From Nasdaq: 2024-06-11 11:02:00

Cognizant Technology Solutions is acquiring Belcan, a global digital engineering services provider, for approximately $1.3 billion in cash and stock. This move will bolster Cognizant’s capabilities in mission-critical Engineering Research & Development services, targeting a $190 billion market with expected annualized revenues of over $800 million by 2024.

Despite strategic acquisitions and a strong partner base, Cognizant faces challenges in the Financial Services segment, leading to a decline in revenues for the first quarter of 2024. The company’s shares have also declined in comparison to the Computer & Technology sector. Cognizant anticipates a revenue decline in the second quarter of 2024, with a Zacks Consensus Estimate of $4.80 billion.

Cognizant Technology Solutions’ acquisition strategy, including the recent Belcan acquisition, has been boosting its digital capabilities and clientele. The company’s acquisitions, such as Thirdera, have contributed to significant growth in ServiceNow capabilities and global presence, targeting a $1 billion AI-driven automation business. Partnerships with Microsoft and Fair Isaac have also played a key role in driving business transformation and enhancing services.



Read more at Nasdaq: Cognizant (CTSH) Boosts ER&D Capabilities With Belcan Buyout