Information technology (IT) services giant Cognizant has entered into an agreement to acquire yet another cloud computing startup, Chicago based 10th Magnitude.
Financial details of the transaction were not disclosed.
Cognizant said that the deal, which is expected to close in the third quarter of 2020, will expand the company’s Microsoft Azure expertise within its new Microsoft Business Group. It will also help the company add development and managed services hubs in major cities throughout the United States, according to a statement.
The acquisition will mark Cognizant’s seventh buy for the year. The company recently announced its intent to acquire Atlanta, Georgia headquartered custom software and digital product development services company, Tin Roof Software.
Its last Microsoft cloud based acquisition was in Late July with an intent to acquire New Signature, A Washington DC based independent Microsoft public cloud transformation provider.
Both the deals are expected to close in the second half of 2020, subject to regulatory approvals.
10th Magnitude provides advisory and managed services, including application modernisation, data center transformation, and data intelligence driven by artificial intelligence (AI). The company works with fortune 500 organisations across industries such as healthcare, financial services, consumer goods and aerospace.
As part of the deal, 10th Magnitude's Azure experts will join Cognizant as part of the Microsoft Business Group.
The company was founded in 2010 by current CEO Alex Brown, shortly after Microsoft announced the launch of Azure.
"The acquisition of 10th Magnitude underscores our commitment to Microsoft, one of our leading strategic partners, and will further strengthen our ability to provide Azure expertise to our clients as they embrace the cloud,” Greg Hyttenrauch, President, Cognizant Digital Systems and Technology said.
“With Cognizant, we will be able to offer greater scope and scale to help our clients use an open and highly-adaptable cloud computing platform to compete more effectively,” Brown said.
Brown added that hyperscale cloud infrastructures would help companies pivot, innovate and be flexible with their applications, which would be of high importance during the current times.