Cognizant keen to ‘pick up’ pace of acquisitions
Cognizant says it hopes to ‘pick up’ the pace of acquisitions as the US-based IT firm scouts for potential targets across regions that will help it enhance capabilities or footprint
New Delhi: Cognizant on Thursday said it hopes to “pick up” the pace of acquisitions as the US-based IT firm scouts for potential targets across regions that will help it enhance capabilities or footprint.
While the company — which competes with Indian tech majors like Tata Consultancy Services (TCS) and Infosys — has bought a number of small firms, Cognizant said, adding it will not shy away from a large acquisition if it brought in value addition.
“Our primary focus in acquisition is to do what we call tuck-in acquisitions that we can integrate easily. We look at acquisitions when they do three things for us — expand capability, industry, geography, and more recently platforms,” Cognizant CEO Francisco D’souza told PTI.
He added that the company will continue to look for platforms — similar to its TriZetto buy (for $2.7 billion) — as it believes that the services-plus-software model will continue to grow.
While Cognizant is headquartered in Teaneck, New Jersey, about 75% of its 2.56 lakh workforce is based out of India.
D’souza said the company continuously scouts the market for exploring potential acquisitions and that digital service is increasingly becoming a critical factor.
“Earlier this year, we came up with a direction that we call accelerating our shift to digital and as part of that, we said we would accelerate pace of M&A... as we go forward, our intent is to actually pick up the pace,” he said.
In June this year, Cognizant acquired TMG Health, while it bought BrilliantService in March. In 2016, it made a series of buys including Mirabeau, Idea Couture and KBACE Technologies, among others.
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