Cognizant to acquire US-based engg. services firm Belcan for $1.3 B
Nasdaq-listed India- and US-based Cognizant Technologies is to acquire Belcan, LLC - a Cincinnati (OH), USA-based supplier of Engineering Research & Development (ER&D) services owned by private equity firm AE Industrial Partners, for USD 1.29 Billion in cash and stock. Of the deal value, USD 1.19 Billion will be paid in cash and a fixed 1.47 million Cognizant shares, with a current value of USD 97 million.The revenue of the acquired business is expected to be over USD 800 million on an annualised basis and has grown at an 8% compound annual growth rate (CAGR) over the last two years.Perella Weinberg Partners served as financial advisor and Arnold & Porter served as legal advisor to Cognizant. Jefferies and Solomon Partners acted as financial advisors and Kirkland & Ellis served as legal advisor to Belcan.
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