Information technology services provider Cognizant Technologies (CTSH.O) announced on Monday its agreement to acquire digital engineering firm Belcan for approximately $1.3 billion in cash and stock. This acquisition is poised to expand Cognizant’s presence in the aerospace, defense, space, and automotive sectors. Belcan, headquartered in Cincinnati and owned by private equity firm AE Industrial Partners since 2015, boasts a workforce of 60,000 across 60 global locations. Among its notable clients are Boeing (BA.N), General Motors (GM.N), Rolls-Royce (RR.L), NASA, and the U.S. Navy.
Cognizant CEO Ravi Kumar expressed enthusiasm about Belcan’s operations in the rapidly growing aerospace and defense sector, noting its potential for synergies with Cognizant’s strengths in industrial manufacturing and automotive services. Under the terms of the deal, Belcan will retain its CEO Lance Kwasniewski and function as a Cognizant subsidiary.
With a market value of $33 billion, Cognizant seeks to enhance its specialized offerings amid anticipated client spending slowdowns. The company has revised its annual revenue forecast to a range of $18.9 billion to $19.7 billion, below previous estimates of $19.0 billion to $19.8 billion.
