Special Correspondent

CTS arm hopes to get $442 m under services agreement

CHENNAI: Delaware Corporation, a subsidiary of Cognizant Technology Solutions Corporation, has entered into a definitive agreement with the Switzerland-based UBS AG and its affiliate UBS Service Centre (India) Private Limited (UBS ISC) to acquire UBS ISC for about $75 million. The purchase price will be funded from the company’s cash reserves. UBS ISC, based in Hyderabad, has been a captive service provider to various UBS entities.

Range of services

UBS AG and its affiliate have entered into a services agreement pursuant to which Cognizant’s subsidiary will provide a range of services, including, but not limited to, business process outsourcing (BPO), knowledge process outsourcing (KPO), information technology services and remote infrastructure management services to various UBS entities.

Delaware expects to receive about $442 million in revenue under the services agreement during its five-year term. There can be no assurance that the company will receive or recognise such amount of revenue during such period or that the services agreement will not be terminated prior to its expiration in accordance with the terms.

UBS ISC at present employs about 2,000 associates. Its capabilities in wealth management, investment banking, asset management research and remote IT infrastructure management will help Delaware strengthen its business and knowledge process capabilities.