Cognizant Technologies to Acquire Belcan for $1.3 Billion, Aims at Aerospace and Defense Expansion

Cognizant Technologies has announced its agreement to acquire digital engineering firm Belcan for nearly $1.3 billion in cash and stock. The deal aims to expand Cognizant's presence in the aerospace, defense, space, and automotive sectors.

Belcan, based in Cincinnati, has been owned by private equity firm AE Industrial Partners since 2015 and employs 10,000 people across 60 global locations. The firm's notable clients include Boeing, General Motors, Rolls-Royce, NASA, and the U.S. Navy.  

As part of the deal, Belcan will continue to be led by its CEO Lance Kwasniewski and operate as a unit of Cognizant. The acquisition is expected to significantly expand Cognizant's Engineering Research & Development (ER&D) capabilities, particularly in the aerospace and defense industry. The deal is anticipated to deliver over $100 million in annual revenue synergies within three years and to be accretive to 2026 EPS.

The transaction is slated to close in the quarter ending September 30, 2024, subject to regulatory approvals and other closing conditions.