After acquiring several companies like SaaSfocus, Hedera Consulting and Advanced Technology Group, Cognizant is in talks to buy Softvision
Cognizant, the information technology giant is likely to acquire Softvision, an applications development firm with the aim of enhancing its digital business. The value has been estimated to be around $550 million.
New-Jersey-based Cognizant has been wanting to reach out to digital and cloud services in a bid to outperform its competitors, Accenture and IBM. It has also been stressing on the cloud computing, cyber-security and analytics consulting aspects to bring down its dependency on the traditional information technology (IT) services. The company has $44.6 billion market share. The digital business, which is its current focus, generates around 30 per cent of its revenue.
Owned by private equity company, Tower Arch Capital, Softvision was formed in 1994. It deals with consulting business with companies on technology products. Its recent project involved creating a video-streaming platform and associated app to be used in waiting rooms at a California-based non-profit health provider, Kaiser Permanente.
Cognizant has been in the news for acquiring several firms lately. In August, a consulting firm dealing in digital transformation, SaaSfocus was acquired. Earlier, it had bought Belgium-based data analytics service provider, Hedera Consulting for stronger consulting and digital transformational capabilities in Belgium and Netherlands.
In addition to these, a privately-held provider of customer and revenue management consulting and implementation services, called Advanced Technology Group (ATG) was acquired by Cognizant. This was done to further strengthen the company’s cloud solutions portfolio as its clients had been increasingly shifting to new business models that are based on recurring revenue streams, subscriptions, consumption, IoT, and Infrastructure as a service offering.
The information technology provider’s new addition to its acquisition list will aid in expanding its business in Romania, which is Softvision’s current workspace for engineering-based operations.