Cognizant Technologies (NASDAQ:CTSH) announced on Monday its agreement to acquire digital engineering firm Belcan for nearly $1.3 billion in a cash and stock transaction.
This acquisition aims to enhance Cognizant’s presence in the aerospace, defense, space, and automotive sectors. Belcan, based in Cincinnati and owned by private equity firm AE Industrial Partners since 2015, employs 10,000 people across 60 global locations. Its clients include Boeing (NYSE:BA), General Motors (NYSE:GM), Rolls-Royce, NASA, and the U.S. Navy.
Cognizant CEO Ravi Kumar expressed enthusiasm about the acquisition, stating, “I’m excited that Belcan operates in a sector growing faster than IT services, providing us an opportunity to capitalize on that growth.”
Kumar further elaborated, “The capabilities that Belcan has in engineering and aerospace can be cross-pollinated into Cognizant’s strengths in industrial manufacturing and automotive. This synergy leverages the distribution networks and services of both companies.”
Belcan will continue to be led by its CEO Lance Kwasniewski and will operate as a unit of Cognizant post-acquisition.
With a market value of $33 billion, Cognizant is focusing on enhancing its offerings in specialized areas as it anticipates a slowdown in client spending. The company has revised its annual revenue forecast to a range of $18.9 billion to $19.7 billion, down from the previous forecast of $19.0 billion to $19.8 billion.
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