Cognizant buys KBACE to boost digital services business

By PTI

  • 27 Jan 2016

IT major Cognizant has acquired privately-held KBACE Technologies for an undisclosed amount, a move aimed at strengthening its digital offering.

As part of the deal, about 400 consultants and implementation experts across industry and business functions will become part of Cognizant.

The terms of the transaction, including financial details, were not disclosed.

New Hampshire, US-based KBACE Technologies has a significant presence in India with about 200 employees based in Bengaluru.

"This is a traditional tuck-in acquisition. As such, it will not have a material impact on Cognizant revenue or financials," a Cognizant spokesperson said.

Cognizant has been aggressively expanding its services through the inorganic route. In 2014, it acquired itaas (Digital video solutions firm), Cadient Group (a full-service digital marketing agency) and Odecee (a digital solutions firm).

Besides, it also has made other acquisitions like that of TriZetto Corporation, Equinox Consulting, SourceNet Solutions and Six companies of the C1 Group in Germany.

Acquisition of KBACE strengthens and expands Cognizant's digital capabilities as more clients move critical business applications to cloud-based IT infrastructure to reduce costs and complexity and improve business agility, it said.

The combined capabilities will further enable Cognizant to help clients become intuitively digital by using the cloud to derive new insights, unlock new opportunities and lower costs through a subscription-based business model, it added.

"The addition of KBACE Technologies and expertise in delivering SaaS digital solutions accelerates Cognizant's cloud strategy and consulting services, provides our clients with access to significant platform expertise and puts us at the forefront of Oracle Cloud partners and technology consultants worldwide," Cognizant Executive Vice President Allen Shaheen said.