Cognizant to Acquire Belcan in $1.3 billion Deal

Cognizant is set to acquire Belcan, a leading supplier of Engineering Research & Development (ER&D) services, in a transaction valued at $1.3 billion in cash and stock.
Cognizant employeesBelcan, a portfolio company of AE Industrial Partners, offers essential digital engineering services to customers in the commercial aerospace, defense, space, marine, and industrial sectors, primarily in North America and the United Kingdom (UK).

This acquisition will significantly bolster Cognizant’s ER&D capabilities, enhancing its already strong presence in the Internet of Things (IoT) and Digital Engineering domains. By acquiring Belcan, Cognizant aims to cement its leadership position in the high-growth aerospace & defense (A&D) industry, benefiting from Belcan’s blue-chip client base, extensive domain expertise, and substantial technological capabilities with over 6,500 engineers and technical consultants.

Belcan is projected to contribute over $800 million in annual revenue, having experienced an 8 percent compound annual growth rate (CAGR) over the past two years.

Cognizant CEO Ravi Kumar S remarked, “Belcan’s clients will gain access to Cognizant’s comprehensive suite of technology services, while our clients in the manufacturing, automotive, energy, and high-tech sectors will benefit from Belcan’s engineering expertise.”

Cognizant anticipates expanding its reach in the $190 billion ER&D services market, which is expected to grow at a CAGR of over 10 percent through 2026. This acquisition will complement Cognizant’s existing IoT and Digital Engineering practice areas.

The company expects to realize over $100 million in annual revenue synergies within three years, along with additional cost synergies over time.

Lance Kwasniewski, CEO of Belcan, will continue to lead the company, which will operate under the Belcan name as an operating unit of Cognizant. The total purchase price of approximately $1.29 billion includes $1.19 billion in cash and $97 million in shares.

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