Cognizant completes $1.3Bn acquisition of engineering staffing firm Belcan
NEW JERSEY, UNITED STATES — Technology services company Cognizant announced that it has completed its acquisition of Belcan, one of the largest privately held companies in Engineering Research & Development (ER&D) services, for $1.3 billion in cash and stock.
This move was first announced in June 2024 and captures the company’s engineering capability. It further forays into IoT and Digital Engineering for service markets in Aerospace and Defense.
Synergies and leadership continuity
The acquisition combines Cognizant’s global scale with Belcan’s specialized expertise in embedded software, mechanical, electrical, and systems engineering.
Belcan will now operate under its own brand within Cognizant’s organization. Lance Kwasniewski will continue as Belcan’s chief executive officer, ensuring continuity and stability.
.@BelcanGlobal is now part of the Cognizant family! This marks a significant expansion of our Engineering Research & Development (ER&D) capabilities and establishes our position as a leader in the Aerospace and Defense industry. pic.twitter.com/MllO1twYXz
— Cognizant (@Cognizant) August 27, 2024
“We are delighted to welcome Belcan to Cognizant officially,” said Cognizant CEO Ravi Kumar S.
“We believe our combined capabilities, shared focus on providing value to our clients through distinctive technological expertise, and global scale and scope means we will be able to deliver high-quality solutions to a diverse mix of customers around the world.”
Financial outlook and growth projections of Cognizant
The company has provided updated financial guidance for 2024, arising from this acquisition. Revenue estimates have increased to $5.02 billion from $4.95 billion.
For 2024, Cognizant now expects revenue growth of 0.9% to 2.4% both on a reported and constant currency basis. The revenue scale is estimated to be in the range of $19.5 billion to $19.8 billion. The revised forecast adds 200 more basis points from inorganic growth due to Belcan, which is much higher than the 70 basis points forecasted by the company well before the acquisition.
Cognizant, a Fortune 500 company recognized among the world’s most respected businesses, combines technologies like IoT, AI, and cloud to help clients stay ahead of workforce and market changes. It ranked #6 in the OA500 2024, an objective index of the world’s top 500 outsourcing companies.
Belcan, on the other hand, provides mission-critical digital engineering services to top aerospace, defense, space, and industrial companies, with over 6,500 engineers and technical consultants.
