Nasdaq-listed Cognizant has announced the acquisition of six companies of Germany’s C1 group, an independent consulting and IT services company, for an undisclosed sum.
Nasdaq-listed Cognizant has announced the acquisition of six companies of Germany’s C1 group, an independent consulting and IT services company, for an undisclosed sum.
The transaction is expected to close next quarter.
It will help Cognizant increase presence in Europe where C1 is one of the largest independent consulting, systems integration, enterprise application and testing service providers.
“Cognizant is one of the largest companies, but has the smallest of presence in Europe. A large part of the company’s revenues come from North America. With this acquisition, Cognizant is trying to get more competitive in Europe,” said an analyst with a domestic brokerage who didn’t want to be named.
The six companies focus on three segments – manufacturing and logistics, energy and utilities and financial services.
C1 also provides enterprise application services (specifically SAP), specialised software development and advanced, high-end testing services.
“The entities bring highly experienced domain, process, and technology experts with deep knowledge of delivering complex systems integration projects in the German and Swiss markets. With their strong client relationships and entrepreneurial ecosystem, these entities are a perfect cultural fit for Cognizant,” said Allen Shaheen, senior vice-president, Cognizant.
Under the terms of the agreement, about 500 professionals across multiple locations in Germany and Switzerland will join Cognizant.
“This strategic acquisition underscores our commitment to the German and the larger European markets. Now Cognizant is even better positioned to help European clients,” Francisco D’Souza, chief executive officer of Cognizant, said in a statement.
Incidentally, Cognizant has cut its guidance for this fiscal and sees a poor second half, unlike many of its peers. It has not handed out the second round of promotions this year in view of the underperformance.
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