Cognizant buys US' digital video solutions firm itaas

Acquisition will enable Cognizant to capitalise on growing demand for greater interactivity

Nasdaq-listed information technology (IT) services company Cognizant has entered into a definitive agreement to acquire itaas, a US-based digital video solutions company, for an undisclosed amount.

It is expected the acquisition will enable Cognizant to capitalise on the growing demand for greater interactivity, higher personalisation and innovative content delivery in the multi-screen and video market.

Founded in 1999 by three persons of Indian origin Vibha Rustagi, Jatin Desai and Jaspal Bhasin, itass employs about 200 in the US, Canada, and India. The Atlanta-headquartered company helps deliver digital video services across traditional cable, broadcast and telecommunications networks and on consumer devices such as set-tops, tablets and smartphones.

The company got around 200 professionals in the US, Canada, and India, Itaas enables television providers and broadcasters, particularly cable channels, to deliver authenticated live streaming and video services on digital platforms, thus adding value to existing television subscriptions and delighting subscribers with exclusive viewing experiences anytime, anywhere, and on any device.

As more viewers look to access Internet video content directly via TV, communications players are seeking out open platforms to reduce time-to-market, while digital device companies are focusing on bundling content with connected devices.

The end-to-end digital video engineering and multiplatform capabilities of Itaas will extend and complement Cognizant’s existing capabilities serving the communications, media, and hi-technology industries. The expanded capabilities will also support other industries such as banking, retail, and healthcare, which are rolling out advanced customer and business platforms centered on video.

“This acquisition continues our long-standing strategy of acquiring sharply focused business capabilities that complement our existing offerings,” said Rajeev Mehta, chief executive (IT services), Cognizant.

“The company’s strong client focus and deep business and technology insights into the entire video ecosystem, combined with Cognizant’s global consulting and delivery capabilities, will create greater value for our mutual clients. As multiplatform video becomes the new normal, new technologies create more empowered and savvy consumers, and more industry sectors look to harness the potential of video for customer interaction, this acquisition strengthens our ability to help enterprises challenge the status quo, and create new business models in response to market shifts and competitive pressures in their industry segments,” he said.

Vibha Rustagi, President and CEO, Itaas added that Cognizant’s global reach, experience, and entrepreneurial culture will allow the company to offer its current and future customers greater scale, a broader range of services, comprehensive solutions, and world-leading consulting and delivery expertise.

“International expansion is critical for us to continue our strong growth and provide greater opportunities for our employees. The agreement announced today is a major step forward for us. With a shared commitment to client satisfaction and delivery excellence, we can drive future diversification based on our combined strengths,” he said.