Calcutta, Oct. 2: Cognizant has acquired French financial services consulting firm Equinox Consulting for an undisclosed sum.
Founded in 2004, Equinox provides consulting services in many areas of finance such as investment banking, asset management, retail banking and insurance.
Cognizant expects an approximate $40 million annualised revenue from this acquisition, the company said today. As part of the deal, about 160 consulting professionals are slated to join Cognizant.
Equinox is known to offer its clients advice on complex regulatory issues such as Basel III norms for banks; the Dodd-Frank act in the US on financial reforms after the 2008 recession; the Foreign Account Tax Compliance act in the US (FATCA); and the EU’s Market in Financial Instruments Directive (MiFID), which regulates investment services.
At present, Cognizant Business Consulting contributes approximately 6-7 per cent to the company’s revenue and has been growing faster than the company average for many years.
“This strategic acquisition underscores our commitment to the French and European markets and reinforces our position as one of the top consulting companies across the region.
“With this acquisition, Cognizant is even better positioned to help European clients challenge the status quo and unleash new potential across their organisations by creating new business and information technology models in response to secular shifts in the economy and technology,” said Francisco D’Souza, chief executive officer, Cognizant.
The move aligns well with its stated strategy of building local capabilities in Europe enhanced by its global delivery model.
The combination of Equinox Consulting’s client-facing expertise, deeply rooted in the local business environment and Cognizant’s global delivery capabilities is expected to help clients in France and Europe address their dual mandate of driving cost efficiencies and operational effectiveness, as well as innovation and business transformation.
This is the second acquisition that Cognizant has concluded in 2013. Earlier this year, it had acquired six companies of the C1 Group in Germany that focus on enterprise applications (SAP) and high-end testing. In 2012, it acquired US-based MediCall, which is involved in medical management.
According to Santosh Thomas, senior vice-president and head of continental Europe and Asia-Pacific of Cognizant, Cognizant Business Consulting has seen a rapid growth trajectory and has over 3,500 consultants today. These are pure-play consulting professionals and do not include functional consultants working on SAP, Oracle, and the like.