Syntel sues Cognizant for more than US$6bn

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Syntel sues Cognizant for more than US$6bn

The US company Cognizant which acquired Australia's Odecee last year is being sued for US$6 billion, in a face-off between two big-time solution providers.

A unit of US-based Syntel is suing Cognizant for more than $6 billion, following up on the company's acquisition of TriZetto late last year.

The lawsuit, filed Monday and first reported by Reuters, alleges that the Cognizant acquisition terminated a contract it had with TriZetto as well as mishandled confidential information. The lawsuit was filed by a division of Syntel, called the Syntel Sterling Best Shores Mauritius Ltd., in the US District Court in New York.

The Syntel unit is asking for US$3.4 million in rebates from TriZetto, as well as US$6.1 billion in punitive damages from Cognizant. Syntel said that it had asked for what it calls "transition rebates" in the past, but TriZetto has refused to pay the rebates.

Syntel declined to comment on the news, as it does not comment on pending litigation. CRN US reached out to Cognizant, but did not receive a response.

The US$2.7 billion TriZetto acquisition from Apax Partners was announced in September and closed in November. TriZetto added health-care-focused IT services, care management and benefit administration capabilities to the portfolio, which could help build Cognizant into a US$3 billion "leader in the health-care market," CEO Francisco D'Souza said on an investor call after the news was first announced.

The acquisition boosted Cognizant's health-care capabilities, as the solution provider makes big moves in the vertical, Malcolm Frank, executive vice president of strategy and marketing, told CRN US at the time. In particular, Frank told CRN US that Cognizant sees big opportunities in health care around mobile, advanced analytics and cloud. The TriZetto acquisition would help give Cognizant the capabilities to act on those opportunities, Frank said.

"We do think it's a game-changer to provide the full capability for the full stack for both payers, providers and, ultimately, the consumers," Frank said at the time.

TriZetto wasn't Cognizant's only acquisition this year. In October, the company picked up marketing agency Cadient to boost its capabilities in the life sciences business and video solutions, as well as Odecee in November 2014, to add to its digital enterprise solutions in the Australia and New Zealand regions.

This article originally appeared at crn.com

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