Cognizant Acquires Belcan for $1.3 Billion to Expand ER&D Services

American IT firm Cognizant has agreed to acquire digital engineering company Belcan, LLC for approximately USD 1.3 billion. This acquisition aims to expand Cognizant's reach in the ER&D (engineering research and development) services industry and diversify into the aerospace, defense, space, and marine sectors.

American IT giant Cognizant has announced a significant acquisition, signing an agreement to acquire digital engineering firm Belcan, LLC for around USD 1.3 billion. The deal includes USD 1.19 billion in cash and 1.47 million Cognizant shares valued at USD 97 million as of June 7, 2024.

Based in Cincinnati, Belcan is owned by private equity firm AE Industrial Partners and will operate as an entity under Cognizant. This move aims to extend Cognizant's reach into the USD 190 billion ER&D services industry and diversify its offerings in aerospace, defense, space, and marine sectors.

The acquisition is projected to generate over USD 100 million in annual revenue synergies within three years, with additional cost synergies expected over time. Belcan's CEO, Lance Kwasniewski, will continue leading the firm, which is anticipated to contribute over USD 800 million in revenue to Cognizant in 2024.