Cognizant buys 6 C1 Group firms
Cognizant on Friday announced that it has entered into an agreement to acquire six companies of the C1 Group, an independent consulting and IT services firm based in Hamburg, Germany. The group has more than 1,200 professionals.
Subject to the satisfaction of certain closing conditions and regulatory approvals, the transaction is expected to close in the first quarter of 2013.
“We expect annualised revenue to be approximately $100 million. This acquisition will be funded through the company’s cash reserves,” a Cognizant spokesperson said, declining to reveal more on the financials of the transaction. The companies focus on three industry segments: manufacturing and logistics, energy and utilities, and financial services. These companies bring deep expertise in enterprise application services (specifically SAP), and high-end testing services that range from test consulting, strategy and design, to implementation.
Under the terms of the agreement, about 500 C1 Group employees scattered across multiple locations in Germany and Switzerland, will join the rolls of Cognizant.
“We look forward to welcoming C1’s talented professionals to Cognizant,” Cognizant CEO Francisco D’Souza said, adding that the strategic acquisition underscores their commitment to the German and the larger European markets, and reinforces the company’s position as one of the top consulting and IT services companies across the region.
“With this acquisition, Cognizant is even better positioned to help European clients achieve agility and competitive advantage by embracing a broad range of services,” D’Souza explained.
Cognizant Technologies employed more than 1.50 lakh people during the third quarter ended September 30, 2012.