Cognizant To Buy Digital Engineering Firm Belcan For USD 1.3 Billion By CIOTechOutlook Team

Cognizant To Buy Digital Engineering Firm Belcan For USD 1.3 Billion

CIOTechOutlook Team | Tuesday, 11 June 2024, 02:25 IST

Cognizant Technologies has agreed to buy digital engineering startup Belcan for approximately $1.3 billion in cash and stock, according to people familiar with the issue.

The transaction would increase Cognizant's presence in the aerospace, defense, space, and automotive industries. Belcan, headquartered in Cincinnati and controlled by private equity firm AE Industrial Partners since 2015, employs 60,000 workers in 60 locations across the world. Boeing, General Motors, Rolls-Royce, NASA, and the United States Navy are among its clients.

As part of the agreement, Belcan will continue to be led by CEO Lance Kwasniewski and operate as a Cognizant entity, according to the people, who spoke on the condition of anonymity ahead of an official announcement later Monday.

Cognizant, with a market value of $33 billion, is trying to expand its capabilities in specialized areas as it prepares for a slowdown in client expenditure. It has reduced its annual sales prediction to $18.9 billion to $19.7 billion, down from previous estimates of $19.0 billion to $19.8 billion.

Cognizant Technology Solutions Corporation is a US-based multinational information technology services and consulting firm located in Teaneck, New Jersey. Cognizant is listed on the NASDAQ-100 and trades under the symbol CTSH. It was created as Dun & Bradstreet's in-house technology unit in 1994 and began serving external clients in 1996.