Cognizant announces Softvision acquisition
Global IT services company Cognizant has announced that it’s acquiring digital engineering firm Softvision. The move will see Cognizant add market-leading tools to its increasingly powerful digital engineering portfolio. Softvision is a major player in the industry, responsible for the design and development of digital products and solutions for some of the world’s biggest brands. With 27 studios based in 11 countries around the world, adding Softvision to its business will cost Cognizant $550 million.
Cognizant’s share price has expanded by 4% so far this year
SOURCE: Yahoo Finance
According to a press release, Cognizant “expects to scale and leverage Softvision’s approach to digital engineering development, cross-functional agile culture, and talent development across its own teams as a key part of its strategy to help clients create new software products.” This is an area in which Softvision excels, and its digital engineering work (the process of “creating, capturing and integrating data using a digital technology”) is amongst the best in the world. It will bring with it a longlist of Fortune 500 clients in financial services, consumer products and healthcare.
Cognizant is also betting that Softvision’s expertise will help it beat off outsourcing rivals like Accenture and IBM with expanded offerings in cloud services.
Gajen Kandiah, president of Cognizant’s digital business, made the following comment: "Innovation and speed to market are paramount for our clients. Extending Softvision’s approach to digital engineering, integrated cross-functional teams, agile culture, and talent development across our own teams is a key element of our strategy. This synergy, together with Cognizant’s deep technology and industry expertise, will enable us to deliver custom cloud-based software and platforms better and faster, helping more clients transform their businesses to become digital leaders."
Dominion holds Cognizant in its Global Trends Managed Fund.
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