Continuing its buying blitz, Cognizant acquires Magenic Technologies
In its third acquisition of 2021 so far, Cognizant has announced that it has entered into an agreement to acquire Magenic Technologies, a software development services company.
The move will bring Magenic's software expertise into Cognizant's global software development portfolio, and expand the latter's software product engineering footprint.
Upon the acquisition's completion, 475 Magenic associates will be absorbed into Cognizant in the US, with a further 350 to be added to operations in the Philippines.
“Magenic has exceptional software development and cloud modernisation teams that will enhance our global engineering talent network and expertise,” says Cognizant digital business and technology president Malcolm Frank.
“We continue to invest in digital engineering, a key priority as clients move from traditional application development to custom software to provide compelling customer experiences and differentiated productivity solutions.
“We look forward to welcoming Magenic's experts to Cognizant.
Cognizant's new acquisition provides Agile software and cloud development, DevOps, experience design, and advisory services. Magenic also works across a range of industries, including financial services, professional services, insurance, pharmaceutical, and manufacturing.
“We have been solving complex business and technological challenges with agility and speed for over 25 years, and Magenic today continues to create highly innovative software solutions in the cloud,” says Magenic co-founder and chief executive officer Greg Frankenfield.
“We look forward to joining Cognizant Softvision and connecting to Cognizant's broader range of digital expertise for the benefit of our clients.
The acquisition comes as part of a buying blitz for Cognizant, a strategy which has resulted in the announcement of 12 separate acquisitions since January 2020, including Magenic's.
The strategy focuses on four key areas: digital engineering, data and artificial intelligence, cloud, and the Internet of Things. Cognizant says putting a priority on these agendas enables its clients to ‘compete as modern digital businesses'.
Magenic represents Cognizant's second digital engineering acquisition in recent months; Cognizant acquired Tin Roof, a custom software and digital product development services company, in September 2020.
Cognizant acquired Austin, Texas-based Softvision, a leader in developing custom digital products using collaborative engineering methods, in 2018. With Magenic, Cognizant Softvision will double its number of development sites in the US, and add the Philippines to its broader global network of existing studios in Argentina, Australia, Canada, India, Mexico, and Romania.
The transaction is expected to close in the first quarter of 2021, subject to the satisfaction of closing conditions. Financial details were not disclosed.