Business Daily from THE HINDU group of publications
Thursday, Sep 07, 2006
Business Daily from THE HINDU group of publications Thursday, Sep 07, 2006 |
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Info-Tech - Mergers & Acquisitions Cognizant acquires US co AimNet Our Bureau
Cognizant, which is currently in the process of building European operations, is looking at companies specialising in financial services, healthcare and manufacturing verticals.
MR LAKSHMI NARAYANAN
Bangalore Sept. 6 , After announcing the acquisition of the US-based AimNet Solutions Inc, Cognizant Technology Solutions said on Wednesday that it was looking for larger buy-outs in Europe and the US to boost its service offerings and expand client base. "The Europe buys would be primarily to add clients, while in the US, we are looking at acquiring specific domain expertise," said Mr Lakshmi Narayanan, President and CEO, Cognizant, on the sidelines of Nasscom Quality Summit in Bangalore.
Specialised services
Cognizant, which is currently in the process of building European operations, is looking at companies specialising in financial services, healthcare and manufacturing verticals, he said. "We are willing to pay $50 million-60 million for each buy-out if it fits our strategy," he said. The earlier deal sizes were sub $25 million, he said. Cognizant acquired the Massachusetts-based AimNet Solutions, a managed infrastructure and professional services firm in a $15 million deal.
Advantages
In acquiring AimNet, Cognizant gains capabilities in the IT infrastructure services practice. Founded in 2000 by former AT&T executives, AimNet is a privately-held company with over 100 employees. The deal provides Cognizant with AimNet's US-based Network Operations Center (NOC), a patent-pending, proprietary infrastructure management software platform, an installed base of over 80 direct and indirect customers and partners, and high-end network and infrastructure consulting capabilities in areas such as network architecture, planning, design and infrastructure security solutions. In addition, Cognizant gains a highly experienced management team, led by industry veteran, Mr Ed Nalbandian, CEO of AimNet, who will join Cognizant to manage its IT Infrastructure Services practice. Further, Mr Narayanan said the company was adding new clients at slightly higher rates than its average billing rates.
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