The Telegraph
Saturday , December 22 , 2012
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Cognizant in buy mode

Mumbai, Dec. 21: Cognizant Technology Solutions today unveiled plans to acquire six companies of C1 Group, an independent consulting and IT services firm based in Germany, for an undisclosed sum.

The deal suggests that some of the largest IT services companies in India are starting to snap up firms abroad.

Back in September, Infosys had acquired Lodestone Holding AG, a SAP consultancy firm, for an aggregate enterprise value of Rs 1,932 crore in cash.

The entities that Cognizant plans to acquire are also expected to bring deep expertise in enterprise application services, particularly SAP, apart from high-end testing services. IT services have been focussing on consulting business as it provides high margins.

The transaction is expected to close in the first quarter of 2013, subject to the satisfaction of certain closing conditions and regulatory approvals.

A statement from Cognizant said the entities to be acquired focused on three industry segments: manufacturing and logistics, energy and utilities, and financial services.

They include btconsult GmbH which is into process and technology consulting and SAP, C:1 Solutions GmbH (consulting and enterprise solutions that include SAP), psc Management Consulting GmbH (process and technology consulting), C:1 SetCon GmbH, Enterprise Services AG and C:1 Holding GmbH.

Under the terms of the agreement, around 500 professionals across multiple locations in Germany and Switzerland will join Cognizant.