It expects annualised revenue of $100 m from C1 Group firms
New Jersey-based Cognizant, on Friday, announced that it had entered into a definitive agreement to acquire six companies of the C1 Group, an independent consulting and IT services firm based in Germany.
While the deal value was not disclosed, a company spokesperson said that Cognizant expected an annualised revenue of $100 million to come from the acquisition. The transaction is subject to regulatory approvals and is expected to close in the first quarter of 2013.
The acquisition of the six firms, which focus on manufacturing, energy and financial services, will see 500 professionals across Germany and Switzerland joining Cognizant. “This strategic acquisition underscores our commitment to the German and larger European markets and makes us better positioned to help European clients in general. I believe that C1’s talented professionals will be a strategic fit for our team,” said Francisco D’Souza, Chief Executive Officer, Cognizant, in a statement.
Known for their client-centric and innovative business culture, these companies bring deep expertise in enterprise application services (specifically SAP), and high-end testing services.
The acquired entities also bring a deep knowledge of delivering integration in the German and Swiss markets.
“If you look at it the overall European IT services market is roughly the same size as its North American counterpart, yet the penetration into Europe is currently a fraction of that in North America. We believe that Europe merits continued focus and investment and this acquisition of six C1 group companies, we believe, is a step in that direction,” said R. Chandrasekaran, Group Chief Executive, Technology and Operations, Cognizant, adding that that the acquisition would be funded through the company’s cash reserves.
This acquisition comes after Cognizant had bought U.S-based Zaffera, in September 2011, which was also into SAP consulting but in the retail sector.
“The merger of the C1 companies with Cognizant would support Cognizant’s growth strategy for Europe. This move will enable the two companies to drive future diversification and realise our growth potential,” said Wilfried Förster, Founder, C1 Group, in a statement.