IT services firm Cognizant on Tuesday said it will acquire Magenic Technologies, a privately-held custom software development services company headquartered in Minneapolis, Minnesota.
The deal, financial terms of which were not disclosed, will expand Cognizant's software product engineering footprint, as per a statement. It will add 475 employees in the United States across seven locations, and over 350 employees in Manila, Philippines.
Post deal, Magenic associates will become part of Cognizant Softvision. Magenic will join Softvision’s broader global network of existing studios in Argentina, Australia, Canada, India, Mexico, and Romania.
Cognizant acquired Austin, Texas-based Softvision, a developer of custom digital products that uses collaborative engineering methods, in 2018.
Founded in 1995, Magenic is the digital technology consulting company that provides agile software and cloud development, DevOps, experience design, and advisory services.
The company also provides solutions that re-architect and migrate products to the cloud, builds customer-facing web apps, creates APIs, and designs secure payment processing systems.
Its clients -- spread across industries of financial services, professional services, insurance, pharmaceutical, and manufacturing -- include Cargill, Dell, Domino’s, Visa, Wells Fargo, and BNP Paribas’ Bank of the West, as per the company website.
"We continue to invest in digital engineering, a key priority as clients move from traditional application development to custom software to provide compelling customer experiences and differentiated productivity solutions,” Malcolm Frank, president of Cognizant’s Digital Business and Technology (DB&T) service line, said.
Frank recently took charge of the new service line, for which the company combined two of its erstwhile service lines -- Digital Business (DB) and Digital Systems and Technology (DS&T).
Magenic is Cognizant's third acquisition in 2021, and its 12th since January 2020.
On January 11, the company announced two separate acquisitions in the enterprise transformation consultancy space -- Sydney-based Servian, and New York-based Linium.
The nearly 27-year-old IT services firm looks to chart its growth by expanding its key focus areas to include data and artificial intelligence (AI), cloud, digital engineering, and internet of things (IoT), across the globe.
The company, in recent years, has invested over $1 billion in acquisitions to support its priorities.
