Cognizant to acquire digital engineering and consulting firm Softvision

US-based IT major Cognizant has entered into a definitive agreement to acquire Softvision, LLC, a privately-held digital engineering and consulting company focused on the development of innovative software solutions and platforms, for an undisclosed amount. The transaction is expected to close in the fourth quarter of 2018, subject to the fulfillment of closing conditions, including regulatory review.

In end-September, Reuters reported that the Teaneck-based company is looking at the Private Equity-backed Softvision for about $550 million to boost its digital business.

Softvision is into developing custom digital products using unique collaborative engineering methods. The combination of capabilities from Softvision and Cognizant would create one of the top digital engineering companies in software product development, the company said.

Founded more than 20 years ago in Silicon Valley, Austin, the Texas-based Softvision works with Fortune 500 clients in financial services, retail, consumer products, healthcare and other industries. Its delivery teams, called pods, combine a global network of design, technical and engineering experts, working collaboratively in studios, to help clients create digital consumer products and scalable digital platforms. It has a digital engineering hub in Romania, and its network includes over 2,850 creative engineers. Cognizant will continue using the Softvision brand following the acquisition.

"By joining forces with Cognizant, we can combine our unique engineering, design and digital product development approach with Cognizant's scale and digital expertise in areas like artificial intelligence, virtual reality, IoT, human science and others to provide even more innovative solutions and impactful experiences," said, Andres Angelani, Softvision's CEO.

Gajen Kandiah, President, Cognizant Digital Business said, "Softvision's unique culture, talented people, and agile model of small, multi-disciplinary client teams, fits well with Cognizant's collaborative approach of innovating with clients to tackle complex, mission-critical business initiatives."

Kandiah, added, "Extending Softvision's approach to digital engineering, integrated cross-functional teams, agile culture, and talent development across our own teams is a key element of our strategy. This synergy, together with Cognizant's deep technology and industry expertise, will enable us to deliver custom cloud-based software and platforms better and faster, helping more clients transform their businesses to become digital leaders."

The company has recently announced the acquisition of Advanced Technology Group, a Salesforce consulting specialist.