Cognizant to acquire Belcan for approximately $1.3 billion
Information technology services provider Cognizant has announced the acquisition of US-based Belcan, a global supplier and established Engineering Research & Development (ER&D) services player, for approximately $1.3 billion in cash and stock, subject to customary adjustments. The transaction is anticipated to close in the September 30th, 2024 quarter, subject to the receipt of required regulatory approvals and other closing conditions.
Lance Kwasniewski, the CEO of Belcan, is expected to continue to lead the company, which will continue to operate under the Belcan name as an operating unit of Cognizant.
The acquisition will significantly expand Cognizant's ER&D capabilities, building upon the Company's leadership in the Internet of Things (IoT) and Digital Engineering practice areas. The acquisition of Belcan will also add scale and enable Cognizant to establish a leadership position in the high-growth aerospace & defense (A&D) industry.
The acquisition is expected to contribute over $800 million annually to Cognizant in 2024. Revenue from the acquired business has grown at an 8% compound annual growth rate (CAGR) over the last two years.
Belcan, a portfolio company of AE Industrial Partners, has a blue-chip client base, deep domain expertise, and significant technological capabilities
With over 6,500 engineers and technical consultants. Belcan’s clients are primarily in North America and the United Kingdom (UK).
Cognizant CEO Ravi Kumar S hopes Belcan’s acquisition will strengthen its position in the sizable and fast-growing ER&D services market.
According to Kumar, Belcan's deep engineering capabilities and domain expertise across the aerospace & defense market will be complemented by Cognizant's scale and own multi-decade digital engineering expertise, providing Belcan's blue-chip client roster access to our advanced AI, Cloud, and Data technologies.
“We see the opportunity to immediately accelerate revenue growth and create compelling shareholder value through our combined engineering capabilities,” Kumar added.
