IT services company Cognizant is set to buy digital engineering firm Belcan worth 1.3 billion dollars in cash and stocks.
This deal will expand the footprint of cognizant in areas like aerospace, defense, space and automotive sectors.
Talking about this deal company’s CEO Ravi Kumar talking to Reuters said, ‘I’m excited about the fact that Belkan operates in a sector (aerospace and defense) which is actually growing faster than the sector we are operating in, which is IT services. So, it gives us an opportunity to evolve on that growth.’
Furthermore, the CEO of Cognizant highlighted Belcan’s areas of strength, emphasizing that the company’s engineering and aerospace expertise could be integrated with Cognizant’s primary focus areas in industrial manufacturing and automotive. Overall, it is anticipated that both parties will benefit from the deal.
‘The capabilities that Belcan has – which is engineering, and which is in aerospace – can actually be cross-pollinated into the Cognizant strength area, which is primarily industrial manufacturing and automotive. So, it’s a cross-pollination of services on both sides and the leverage of distribution networks on both sides,” Kumar added. ” … That’s the synergy we see.’ added kumar.
Further, as a part of the deal, Belcan will continue to be run by CEO Lance Kwasniewski and will operate as a Cognizant’s unit.