Belcan will be acquired by Cognizant Technologies for $1.3 billion in cash and equity
The agreement would increase Cognizant’s presence in the aerospace, defence, space, and automotive industries. Cognizant is situated in Teaneck, New Jersey.
According to persons familiar with the issue, digital engineering firm Belcan has agreed to be acquired by information technology services provider Cognizant Technologies for approximately $1.3 billion in cash and equity.
The agreement would increase Cognizant’s presence in the aerospace, defence, space, and automotive industries. Cognizant is situated in Teaneck, New Jersey. Cincinnati-based Belcan employs 10,000 workers and has been controlled by the private equity firm AE Industrial Partners since 2015. The company has 60 facilities worldwide. Among its customers are the U.S. Navy, NASA, General Motors, Rolls-Royce, Boeing, and the space agency.
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According to the individuals, who spoke on condition of anonymity in advance of an official announcement anticipated later on Monday, Belcan will continue to be run by its CEO, Lance Kwasniewski, and function as a division of Cognizant as part of the agreement.
With a $33 billion market valuation, Cognizant is preparing for a decline in customer spending by expanding its specialised product offerings. Its previous projection of $19.0 billion to $19.8 billion has been lowered to a range of $18.9 billion to $19.7 billion in annual revenue.
