The COVID-19 pandemic has forced many companies to increase their digital services and capabilities, so it is not surprising that some firms are focusing on the acquisition of cloud-based companies.
One such firm is U.S.-based Cognizant, which is one of the world's leading professional services companies. In fact, this year alone, the company has made six cloud-related acquisitions so far.
Just last week Cognizant revealed that it is set to buy Tin Roof Software, an Atlanta-based company that specializes in digital products that allow companies to improve customer experiences and increase revenue. That announcement followed Cognizant’s recent acquisitions of Collaborative Solutions, adding new finance and HR advisory and implementation services to Cognizant's cloud offerings; EI-Technologies, a Paris-based digital technology consulting firm and leading independent Salesforce specialist; Code Zero Consulting, a privately-held provider of consulting and implementation services for cloud-based configure-price-quote and billing solutions; and Lev, a privately-held, digital marketing consultancy in the U.S.
Now comes word that Cognizant has entered into an agreement to acquire Chicago-based 10th Magnitude, a cloud specialist focused exclusively on the Microsoft Azure cloud computing platform. 10th Magnitude combines elements from multiple deep cloud competencies, as well as technology tools and platforms to help clients become more agile, customer-focused, and operationally efficient.
“Modernizing business platforms by shifting to the cloud is a key priority for our clients,” said Greg Hyttenrauch, President, Cognizant Digital Systems and Technology. “The acquisition of 10th Magnitude underscores our commitment to Microsoft, one of our leading strategic partners, and will further strengthen our ability to provide Azure expertise to our clients as they embrace the cloud. We are excited to unlock the power of this acquisition and to welcome 10th Magnitude’s outstanding team to Cognizant.”
While financial details of the deal were not disclosed, 10th Magnitude’s Azure experts will join Cognizant as part of the Microsoft Business Group. The transaction is expected to close in the third quarter of 2020.