Cognizant Completes Acquisition of Belcan

Media Release by Cognizant of August 27th.

Cognizant today announced it completed the acquisition of Belcan for approximately $1.3 billion in cash and stock. Belcan is a leading global supplier of Engineering Research & Development (ER&D) services for the commercial aerospace, defense, space, marine and industrial verticals. 

First announced in June 2024, the strategic acquisition strengthens Cognizant’s engineering capabilities, builds on its leadership in the Internet of Things (IoT) and Digital Engineering practice areas, and increases its presence in the high-growth aerospace and defense (A&D) services market.

„We are delighted to officially welcome Belcan to Cognizant,“ said Cognizant CEO Ravi Kumar S. „We believe our combined capabilities, shared focus of providing value to our clients through distinctive technological expertise, and global scale and scope means we will be able to deliver high-quality solutions to a diverse mix of customers around the world.“

Belcan is an established player in ER&D that provides mission-critical digital engineering services for a long-standing customer base across the commercial aerospace, defense, space, marine and industrial verticals, primarily in North America and the United Kingdom (UK). Belcan employs over 6,500 engineers and technical consultants and brings deep expertise in embedded software, mechanical, electrical and systems engineering.

Updated Third Quarter and Full-Year 2024 Guidance 
(all growth rates year-over-year)

• This guidance update reflects the impact from the Belcan acquisition. There have been no changes to the underlying forward looking business outlook provided in the company’s second quarter 2024 earnings press release on July 31, 2024.
• Third quarter revenue is expected to be $4.95 – $5.02 billion, an increase of 1.1% to 2.6% as reported, or an increase of 1.3% to 2.8% in constant currency, reflecting the impact of approximately one month of Belcan within Cognizant.
• Full-year 2024 revenue is expected to be approximately $19.5 – $19.8 billion, an increase of 0.9% to 2.4% as reported and on a constant currency basis. This assumes approximately 200 basis points of inorganic contribution versus approximately 70 basis points previously.
• Full-year 2024 Adjusted Operating Margin is expected to be in the range of 15.0% to 15.2%. This reflects approximately 30 basis points of estimated impact from Belcan, including transaction and integration related expenses and non-cash amortization of acquired intangibles.
• Full-year 2024 Adjusted Diluted EPS is expected to be in the range of $4.56 to $4.64. This assumes approximately 497 million shares outstanding, unchanged from our prior estimate.
• Full-year 2024 Net Interest Income is expected to be approximately $55 million.
• Full-year 2024 Adjusted effective tax rate is unchanged at 24% to 25%.