Global IT consulting firm Cognizant ($CTSH) is acquiring New Signature, a Microsoft Azure Expert MSP and Top 200 Public Cloud MSP, according to ChannelE2E research. Financial terms were not disclosed.
This is M&A deal 304 that ChannelE2E has covered so far in 2020.
As part of this deal, Cognizant will launch a new dedicated business group focused on Microsoft cloud solutions. New Signature has more than 500 cloud experts who focus mainly on Azure, Microsoft 365, and Dynamics 365. The acquired business has experts in the United States, United Kingdom, and Canada.
Ahead of the deal, Cognizant was recognized as a 2020 Microsoft Partner of the Year in three categories: SAP on Azure, Government, and U.S. Partner for Modern Workplace – Apps & Solutions for Microsoft Teams.
Cognizant Acquires New Signature: Business Details
New Signature's annual revenue was $52.5 million in 2018, up 230 percent over a three-year period, according to the Inc. 5000 list for 2019.
New Signature's cloud consulting clientele includes Virgin Atlantic Airways, Hershey Company, the National Health Service (NHS) and the British Heart Foundation, the seller says.
New Signature honors include 2019 Microsoft U.K. Partner of the Year award, 2018 Microsoft IMPACT Canada award, and 2015 and 2014 Microsoft U.S. Partner of the Year awards. New Signature was also recognized in 2019, for the eighth consecutive year, as one of the Inc. 5000 Fastest Growing Companies.
New Signature was backed by private equity firm Columbia Capital ahead of the deal. Arma Partners acted as financial advisor to New Signature on the sale to Cognizant.
Cognizant Acquires New Signature: Executive Perspectives
In a prepared statement about the deal, Greg Hyttenrauch, president, Cognizant Digital Systems and Technology, said:
"The pace of cloud adoption continues to accelerate across industries, with Microsoft's cloud solutions among the preferred technologies to help transform and strengthen businesses. Acquiring New Signature will enrich our cloud-first capabilities and complement our increasing strengths as a Microsoft partner. We look forward to welcoming New Signature into the Cognizant family."
Added New Signature CEO Jeff Tench:
"New Signature's success is built upon helping clients create and accelerate their business transformation through the adoption of Microsoft cloud technologies. In joining Cognizant, we will have access to Cognizant's deep industry expertise and global scale, and together, provide best-in-class cloud solutions for the intelligent workplace, applied innovation, and managed services. We share a passion for innovation and look forward to our future at the heart of Cognizant's new Microsoft Business Group."
Concluded Judson Althoff, executive VP of Microsoft's Worldwide Commercial Business.
"The New Signature acquisition will enhance Cognizant's ability to partner with customers across industries and geographies on their cloud strategy and business transformation. We look forward to building on our long-standing partnership with Cognizant, especially with the coming launch of Cognizant's new Microsoft Business Group."
Cognizant Acquisitions, Quarterly Financial Results
This is Cognizant's fifth acquisition of 2020. The other deals involved buying:
- May 2020: Workday SaaS partner Collaborative Solutions.
- March 2020: Salesforce cloud partner Lev.
- February 2020: Code Zero for cloud-based CPQ and billing consulting.
- February 2020: Salesforce partner El Technologies.
Meanwhile, Cognizant is expected to announce Q2 2020 financial results on July 29, 2020. During the earnings call, the IT consulting firm may also provide an update about a recent ransomware attack and related recovery costs, MSSP Alert reports.
