- Cognizant Technology Solutions Corp (NASDAQ: CTSH) recently announced it entered into an agreement to buy Magenic Technologies. These are the details.
Cognizant Technology Solutions Corp (NASDAQ: CTSH) recently announced it entered into an agreement to buy Magenic Technologies, which is a privately-held custom software development services company headquartered in Minneapolis, Minnesota.
The deal will expand Cognizant’s software product engineering footprint, adding 475 employees in the U.S. across 7 locations and more than 350 employees in Manila, Philippines. And upon completion of the acquisition, Magenic associates will become part of Cognizant Softvision, thus connecting Magenic’s expertise with Cognizant’s global software development capabilities.
Magenic is known for providing Agile software and cloud development, DevOps, experience design, and advisory services. Plus Magenic offers custom solutions for Fortune 500 clients and others include re-architecting and migrating products to the cloud, building customer-facing web apps, creating APIs, and designing secure payment processing systems. The company works across a wide range of industries, including financial services, professional services, insurance, pharmaceutical, and manufacturing.
Magenic is Cognizant’s third acquisition in 2021 already. And it is the 12th announced since January 2020 to expand in key strategic focus areas: digital engineering, data and artificial intelligence, cloud, and the Internet of Things. Magenic is Cognizant’s second digital engineering acquisition in recent months as it acquired Tin Roof, a custom software and digital product development services company in September 2020.
Cognizant also acquired Austin, Texas-based Softvision, a leader in developing custom digital products using collaborative engineering methods in 2018. And with Magenic, Cognizant Softvision will double its number of development sites in the U.S., and add the Philippines to its broader global network of existing studios in Argentina, Australia, Canada, India, Mexico, and Romania.
The deal is expected to close in the first quarter of 2021, subject to closing conditions. The financial details were not disclosed.
KEY QUOTES:
“Magenic has exceptional software development and cloud modernization teams that will enhance our global engineering talent network and expertise. We continue to invest in digital engineering, a key priority as clients move from traditional application development to custom software to provide compelling customer experiences and differentiated productivity solutions. We look forward to welcoming Magenic’s experts to Cognizant.”
— Malcolm Frank, President, Digital Business and Technology, Cognizant
“We have been solving complex business and technological challenges with agility and speed for over 25 years, and Magenic today continues to create highly innovative software solutions in the cloud. We look forward to joining Cognizant Softvision and connecting to Cognizant’s broader range of digital expertise for the benefit of our clients.”
— Greg Frankenfield, Co-Founder and Chief Executive Officer, Magenic
