Cognizant has completed its acquisition of Belcan, a leading global provider of Engineering Research and Development services, for approximately $1.3 billion in cash and stock. The acquisition, first announced in June 2024, is set to enhance Cognizant's engineering and digital capabilities, especially in high-growth sectors like aerospace, defense, and industrial verticals. Belcan brings over 6,500 engineers and technical consultants with expertise in embedded software, mechanical, electrical, and systems engineering, primarily serving North American and UK markets. Cognizant CEO Ravi Kumar S. highlighted the companies' combined strengths in delivering advanced technological solutions to a broad range of clients globally.
This acquisition is expected to impact Cognizant’s financial outlook, with third-quarter revenue projected to be approximately $5 billion and full-year 2024 revenue expected to reach nearly $20 billion, reflecting a significant contribution from Belcan. The adjusted operating margin for 2024 is forecasted at 15.0% to 15.2%, including expenses related to the acquisition. Cognizant’s acquisition strategy aligns with its goal to lead in IoT and digital engineering while advancing its position in the aerospace and defense sectors, further strengthening its role as a leader in modernizing businesses and driving technological innovation.
