Cognizant Technology Solutions this week unveiled plans to acquire Softvision in a deal reportedly worth more than half a billion dollars.
The IT services company set its sights on the application developer in September in a deal worth $550 million, Reuters reported at the time.
The move comes as Cognizant looks to increase its digital and cloud services offerings to take on rivals such as Accenture and IBM, Reuters reported.
Cognizant did not disclose the purchase price and declined to provide one when contacted by CRN USA. The transaction is expected to close in the fourth quarter of 2018 subject to the satisfaction of the closing conditions, including regulatory review.
"Innovation and speed to market are paramount for our clients," Gajen Kandiah, president of Cognizant Digital Business, said in a statement. "Softvision's unique culture, talented people and agile model of small, multidisciplinary client teams fit well with Cognizant's collaborative approach of innovating with clients to tackle complex, mission-critical business initiatives."
Softvision's approach to digital engineering, integrated cross-functional teams, agile culture and talent development across Cognizant’s teams will be a key element of its strategy, according to Kandiah.
“This synergy, together with Cognizant's deep technology and industry expertise, will enable us to deliver custom cloud-based software and platforms better and faster, helping more clients transform their businesses to become digital leaders,” she said.
Softvision works with customers in financial services, retail, consumer products, health care and other industries. It has created end-to-end digital products and solutions that connect brands with consumers for clients such as Estee Lauder, Groupon, Macy's, Mozilla and Kaiser Permanente, the company said.
Softvision’s delivery teams, called pods, combine a global network of design, technical and engineering experts, working collaboratively in studios, to help customers create digital consumer products and scalable digital platforms, a statement read.
Cognizant plans to continue use of the Softvision brand following the acquisition.
“We are very happy with the opportunities that this new chapter brings to all Softvisioners, and we are honoured to continue our mission of building and evolving transformational partnerships with our clients, now with the strategic support and appreciation from Cognizant, an influential pioneer and leader in the space,” said Softvision CEO Andres Angelani in a statement to employees.
Angelani said Softvision plans to leverage Cognizant’s scale and expert capabilities in artificial intelligence, virtual reality, the Internet of Things, human science, plus a wealth of industry domain expertise across its large portfolio of clients.