Cognizant Expands Footprint In Europe With Frontica Buyout
Zacks Investment Research | Oct 03, 2016 10:28PM ET
To boost its presence in northern Europe, Cognizant Technology Solutions Corporation (NASDAQ:CTSH) has announced the acquisition of Norway-based IT solutions provider, Frontica Business Solutions for nearly $128 million.
Reportedly, Frontica had backlog worth 5.1 billion Norwegian Krone at the end of its last reported quarter driven by important agreements with its key clientele. Frontica is a subsidiary of Norwegian oil investment services company, Akastor ASA.
In a statement, Cognizant’s President, Global Growth Markets, stated “The acquisition helps us strengthen our oil and gas industry expertise, expand our presence in key markets, and deepen and broaden our service portfolio for our clients. Frontica will play a key role in helping us realize these benefits through their specialized capabilities in serving the oil and gas industry.”
Acquisitions have been a key growth catalyst for Cognizant. In January this year, Cognizant acquired KBACE Technologies, which specializes in cloud strategy, implementation and integration. It will aid in expanding the company’s advanced IT capabilities, especially for Cloud and SaaS offerings. Also, it bought a 49% stake in ReD Associates that specializes in understanding customer behavioral pattern and applying the same to business strategy. Recently, the company also declared its plans to acquire Idea Couture, which will be integrated with Cognizant Digital Works.
Earlier, the company completed the acquisitions of TriZetto, iTask, Cadient, Odyssey and itaas. The company has not only gained new customers from these buyouts but also expanded its capabilities in the healthcare industry and enhanced its overall digital delivery capabilities. Among these, TriZetto happens to be Cognizant’s largest acquisition to-date. The company spent $2.8 billion to acquire the healthcare IT solutions provider to develop, license, implement and support proprietary and third-party software products for the healthcare industry. Currently, the combined entity generates more than $3 billion in revenues from the healthcare sector.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.