By Milana Vinn
(Reuters) – Information technology services provider Cognizant Technologies has agreed to acquire digital engineering firm Belcan for nearly $1.3 billion in cash and stock, according to people familiar with the matter.
The deal would expand Teaneck, New Jersey-based Cognizant’s footprint in the aerospace, defense, space and automotive sectors. Cincinnati-based Belcan, which has been owned by private equity firm AE Industrial Partners since 2015, employs 60,000 people across 60 locations globally. Some of its clients include Boeing, General Motors, Rolls-Royce, the U.S. space agency NASA and the U.S. Navy.
As part of the deal, Belcan would continue to be led by its CEO Lance Kwasniewski and operate as a unit of Cognizant, the sources said, speaking on condition of anonymity ahead of an official announcement expected later on Monday.
Cognizant, which has a market value of $33 billion, is looking to strengthen its offerings in specialized areas as it braces for a slowdown in spending from clients. It has cut its annual revenue forecast in the range of $18.9 billion to $19.7 billion, below prior expectations of $19.0 billion to $19.8 billion.
(Reporting by Milana Vinn in New York; Editing by Will Dunham)
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