Cognizant Acquires New Signature
Transaction Overview and Rationale
- On July 28, 2020, Cognizant announced an agreement to acquire Microsoft cloud partner New Signature
- New Signature provides cloud computing and IT services and support. As a Microsoft cloud partner, they offer Microsoft infrastructure technologies, learning, technology management and web design/development
- The acquisition expands the company’s hyperscale cloud advisory services, and will help build up a dedicated group within Cognizant centered on Microsoft cloud solutions.
- Cloud has become an area of ongoing focus and investment for Cognizant: New Signature is their fifth cloud related acquisition of 2020. These are listed below:
COVID-19 Has Accelerated M&A for Digital Transformation Companies
- COVID-19 and the ensuing shift to work-from-home, has enterprises accelerating their investments in digital transformation and move to a cloud native environment. This is driving demand for cloud infrastructure (like
Microsoft Azure, Amazon AWS, Google Cloud etc.) cloud applications (like Salesforce.com, ServiceNow, Zoom) and
cloud security (Crowdstrike, Zscaler, Okta)
- For IT services providers, this has resulted in increased M&A activities with companies scaling up their offerings in these and related areas quickly through M&A
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