IT services major Cognizant has entered into a definitive agreement to acquire six companies of Germany-based C1 Group, an independent consulting and IT services firm located in Hamburg. Although the deal value has not been disclosed, the transaction is expected to be closed in the first quarter of 2013.
The six companies to be acquired by Cognizant are btconsult, C:1 Solutions, psc Management Consulting, C:1 SetCon, Enterprise Services AG and C:1 Holding. The acquisition will strengthen the company’s revenues in Germany and Switzerland by about $100 million.
The acquired companies focus on three key industry segments – manufacturing and logistics, energy and utilities, and financial services. They also bring deep expertise in enterprise application services (especially SAP) and high-end testing services that include test consulting, strategy & design, and implementation.
According to the agreement, about 500 professionals across multiple locations in Germany and Switzerland will join Cognizant post acquisition.
Commenting on the deal, Francisco D’Souza, chief executive officer of Cognizant, said, “This acquisition underscores our commitment to the German and the larger European markets. With this acquisition, Cognizant is even better positioned to help European clients achieve competitive advantage by embracing a broad range of services. The client-first culture of the C1 team, driven by extensive local business insights, strong relationships and entrepreneurial passion, makes it an excellent strategic fit for Cognizant.”
“The merger of the C1 companies with Cognizant would support Cognizant’s growth strategy for Europe and create a bond with C1’s remaining companies,” said Wilfried Forster, founder of the C1 Group. “This move will enable the two companies to drive future diversification, and realise the strong growth potential of our combined strengths,” he added.
(Edited by Sanghamitra Mandal)