Cognizant Ventures into Aerospace and Defense with Belcan Acquisition

Teaneck, New Jersey-based Cognizant Technologies has unveiled plans to acquire Cincinnati-based digital engineering firm Belcan for approximately $1.3 billion in cash and stock. This strategic move aims to bolster Cognizant’s presence in key sectors including aerospace, defense, space, and automotive.

Belcan, which has been under the ownership of private equity firm AE Industrial Partners since 2015, employs 10,000 professionals across 60 global locations. Notably, the firm serves prestigious clients such as Boeing, General Motors, Rolls-Royce, NASA, and the U.S. Navy, reinforcing its strong foothold in critical industries.

“I’m excited about the growth prospects in the aerospace and defense sectors, which are outpacing our current IT services sector,” commented Ravi Kumar, CEO of Cognizant, in an interview with Reuters. “Belcan’s expertise in engineering, particularly in aerospace, complements Cognizant’s strengths in industrial manufacturing and automotive. This synergy will enhance service offerings and distribution networks for both entities,” Kumar emphasized.

Under the terms of the acquisition, Belcan will continue to operate autonomously under the leadership of its current CEO, Lance Kwasniewski, functioning as a distinct unit within Cognizant.

With a market value of $33 billion, Cognizant aims to fortify its specialized service capabilities amidst anticipated client spending slowdowns. The company recently adjusted its annual revenue forecast to $18.9 billion to $19.7 billion, reflecting its proactive strategy to navigate evolving market dynamics.

The acquisition of Belcan marks a pivotal step for Cognizant as it endeavors to expand its technological prowess and client base in critical sectors, positioning itself as a leader in digital engineering and IT services on a global scale.