Financial Services News

Cognizant to acquire Magenic Technologies in third buyout this year

Cognizant Technology Solutions Corp. on Tuesday said it has entered into an agreement to acquire Magenic Technologies, Inc., a privately-held custom software development services company headquartered in Minneapolis, Minnesota.

Upon completion of the acquisition, Magenic employees will become part of Cognizant Softvision, adding 475 employees in the US and more than 350 employees in Manila, Philippines. Cognizant acquired Texas-based Softvision in 2018.

With Magenic, Cognizant Softvision will double its number of development sites in the US and add the Philippines to its global network of existing studios in Argentina, Australia, Canada, India, Mexico, and Romania.

The transaction is expected to close in the first quarter of 2021. Financial details were not disclosed.

The acquisition will expand Cognizant’s software product engineering footprint as Magenic provides agile software and cloud development, DevOps, experience design, and advisory services to clients across industries, including financial services, professional services, insurance, pharmaceutical, and manufacturing.

“Magenic has exceptional software development and cloud modernization teams that will enhance our global engineering talent network and expertise,” said Malcolm Frank, president, Digital Business and Technology, Cognizant. “We continue to invest in digital engineering, a key priority as clients move from traditional application development to custom software to provide compelling customer experiences and differentiated productivity solutions.”

Magenic is Cognizant’s third acquisition in 2021, and the 12th announced since January 2020, as the company expands in key strategic focus areas of digital engineering, data & artificial intelligence, cloud, and the internet of things.

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