Cognizant gets nod to buy software firm

Nasdaq-listed Cognizant Technology Solutions has received the approval of Foreign Investment Promotion Board (FIPB) for buying 100 per cent stake in an Indian software company.

Cognizant spokesperson confirmed the FIPB approval, but refused to divulge further information.

Earlier, Cognizant Chief Financial Officer Gordon Coburn had said the company was looking at acquisitions in Germany and Switzerland.

The spokesperson said a formal announcement on the acquisitions would be made soon.

Cognizant President and CEO N Lakshminarayanan, while announcing its earnings forecast for the fourth quarter ending December 2003, had said the company was looking for acquisitions in the business process outsourcing and transactions processing space.

Cognizant's revenue increased 10 per cent to $108.2 million during the fourth quarter ended December 2003 from $98.1 million in the third quarter. It was 61 per cent more than $67 million earned during the fourth quarter of 2002.

The net income increased to $17.7 million during the fourth quarter of 2003 from $16 million in the third quarter. The operating margin for the fourth quarter increased marginally to 19.8 per cent from 19.6 per cent in the third quarter and 19.8 per cent in the fourth quarter of 2002.