Cognizant Technology Solutions Corp. announced that it completed the acquisition of Belcan for approximately $1.3 billion in cash and stock. Belcan is a global supplier of engineering research and development services for the commercial aerospace, defence, space, marine and industrial verticals.
First announced in June, the acquisition will help boost Cognizant's engineering capabilities, build on its internet of things and digital engineering areas, and increase its presence in the aerospace and defence services market.
"We are delighted to officially welcome Belcan to Cognizant," Ravi Kumar S, chief executive officer of Cognizant, said. "We believe our combined capabilities, shared focus of 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."
HCLTech, Xerox Extend Agreement For AI, Digital Engineering-Driven Innovation
Cognizant also updated its third-quarter and full-year 2024 guidance to include Belcan impact, with all growth rates year-over-year:
-
Third-quarter revenue is expected to be $4.95–5.02 billion, an increase of 1.1% to 2.6% as reported, or an increase of 1.3% to 2.8% in constant currency, reflecting the impact of approximately one month of Belcan within Cognizant.
-
Full-year 2024 revenue is expected to be approximately $19.5–19.8 billion, an increase of 0.9% to 2.4% as reported and on a constant-currency basis. This assumes approximately 200 basis points of inorganic contribution versus approximately 70 basis points previously.
-
Full-year 2024 adjusted operating margin is expected to be in the range of 15% to 15.2%. This reflects approximately 30 basis points of estimated impact from Belcan, including transaction and integration related expenses and non-cash amortisation of acquired intangibles.
-
Full-year 2024 adjusted diluted EPS is expected to be in the range of $4.56 to $4.64. This assumes approximately 497 million shares outstanding, unchanged from its prior estimate.
-
Full-year 2024 net interest income is expected to be approximately $55 million.
-
Full-year 2024 adjusted effective tax rate is unchanged at 24% to 25%.
Enterprises To Prioritise SaaS Application Backup Due To IT Outage Risk: Gartner. Read more on Technology by NDTV Profit.