Overview:
On 7 December 2022, Cognizant announced that it had agreed to acquire Utegration, a Houston, TX-based SAP partner, to strengthen its SAP consulting practice and augment its IP portfolio.
Financial details were not disclosed.
About Cognizant:
Cognizant is a leading global IT and professional services company. It engineers modern businesses, helping its clients modernize technology, reimagine processes and transform experiences, enabling them to stay ahead of the curve.
It is headquartered in Teaneck, NJ and has over 349,000 employees across offices worldwide.
About Utegration:
Founded in 2008, Utegration is an SAP consulting services and solutions provider. It provides full-service SAP consulting and custom SAP-certified solutions for the energy & utilities industry.
Its industry-specific custom solutions, Utility4U™, MeterData4U™, Finance4U™, and LoadPlanning4U™, are aligned to specific domains in line with key market needs: customer experience, billing and advanced metering infrastructure, managed services, data science and analytics, and finance and asset performance management.
It has over 50 clients in North America and c.350 employees across North America and India.
It is headquartered in Houston, TX.
Rationale of the transaction:
Utegration will expand Cognizant’s IP portfolio and augment its SAP consulting capabilities in the energy & utilities industry vertical.
The acquisition comes at a time when Gartner forecasts global IT spending in the power and utilities industry to grow to c.$175 billion by year-end 2022 driven by clean energy initiatives, grid modernization, and customer experience management initiatives.
Commenting on the transaction, Rob Vatter, Executive Vice President of Cognizant's Enterprise Platform Services said, "We believe Utegration's rich industry expertise and differentiated portfolio of energy and utilities-focused products and accelerators is a perfect complement to our SAP practice. In bringing together Utegration's experienced, specialist team with our global scale in SAP and digital transformation, we have a strong new set of capabilities designed to address the market's critical transformation needs."
The transaction is expected to close by year-end 2022.
The Chesapeake Group was not an advisor in this transaction.