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Wednesday 29 July 2020

Cognizant to acquire New Signature

cogCognizant has announced it is to buy Microsoft public cloud specialist, New Signature. The transaction is expected to close in Q3. Financial details were not disclosed. 

The acquisition (which brings c500 cloud experts from the UK, the US and Canada) will be used as the foundation for a new, dedicated group (called Microsoft Business Group) within Cognizant based around Microsoft cloud solutions. New Signature has an integrated offering across Microsoft's business clouds: Azure, Microsoft 365, and Dynamics 365. Clients include Virgin Atlantic (cloud migration), the NHS (mapping public defibrillators in the UK) and the British Heart FoundationNS

New Signature’s CEO, Jeff Tench said the acquisition would give it access to “deep industry expertise and global scale” and that he looks forward to “our future at the heart of Cognizant's new Microsoft Business Group".

Cognizant has maintained a fast-paced acquisition drive in 2020 (e.g. Workday, Lev, and Contino). Last year, the firm announced its Fit for Growth initiative, aimed at streamlining its cost structure to enable investments (including acquisitions) in key battlegrounds such as data, Digital Engineering, Cloud and IoT.

The addition of New Signature undoubtedly brings some great specialist capability and paired with the earlier acquisition of Contino, Cognizant has now snapped up two key cloud specialists in the UK market. A key challenge will be to retain all of that great talent. 

Cognizant’s Q1 2020 results showed revenue grew 3.5% year-on-year, but was down 1.4% quarter-on-quarter – similar to that of Infosys and Wipro.

Posted by: Kate Hanaghan

Tags: acquisition  

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