IT services major Cognizant has entered into a definitive agreement to acquire six companies of Germany-based C1 Group, a move that will strengthen its revenues in Germany and Switzerland by about $100 million.
C1 Group is an independent consulting and IT services firm based in Hamburg, Germany.
The six companies acquired by Cognizant are btconsult, C:1 Solutions, psc Management Consulting, C:1 SetCon, Enterprise Services AG and C:1 Holding.
Subject to the satisfaction of certain closing conditions and regulatory approvals, the transaction is expected to close in the first quarter of 2013, Cognizant said in a statement.
"The (six) companies focus on three industry segments – manufacturing and logistics, energy and utilities, and financial services," it added.
The terms of the transaction were not disclosed.
A Cognizant spokesperson said: "We expect annualized revenues (of the six companies) to be approximately USD 100 million."
As per the agreement, about 500 professionals across multiple locations in Germany and Switzerland will join Cognizant.
"With this acquisition, Cognizant is even better positioned to help European clients achieve agility and competitive advantage by embracing a broad range of services," Cognizant CEO Francisco D'Souza said.
These companies bring deep expertise in enterprise application services (specifically SAP), and high-end testing services that include test consulting, strategy and design,
and implementation, the company said.
"International expansion is critical for parts of the group to continue our strong growth, develop better solutions for our current and future customers, and provide greater opportunities for our employees," Founder of the C1 Group Wilfried Förster said.
The merger of the C1 companies with Cognizant would support Cognizant's growth strategy for Europe and create a bond with C1's remaining companies, he added.