St. Louis Park-based software consultancy Magenic Technologies Inc. has agreed to be acquired by Cognizant Technology Solutions Corp., the firms announced Tuesday.
The deal, terms of which weren't disclosed, is expected to close sometime in the first quarter. It's not yet clear whether the Magenic brand will survive the merger.
Magenic will be part of Cognizant Softvision, Cognizant's software development division that was created by its 2018 acquisiton of Austin, Texas-based Softvision
"We look forward to joining Cognizant Softvision and connecting to Cognizant's broader range of digital expertise for the benefit of our clients," Magenic Co-founder and CEO Greg Frankenfield said in a statement.
New Jersey-based Cognizant (Nasdaq: CTSH) will get Magenic's clients and their employees, including 475 in the U.S. and over 350 in the Philippines. Both companies don't expect layoffs and hope to actually continue to hire, including in the Twin Cities, where Magenic has about 250 employees, according to Business Journal research.
Founded in 1995, Magenic has lately had particular expertise in helping companies migrate to the cloud. That's a big part of what Cognizant found attractive, said Don Kvam, Magenic's vice president of marketing development. Magenic's clients are large companies in a variety of industries, including health care, retail and financial services.
With Cognizant's expertise, Magenic hopes to build out artificial intelligence and IOT offerings for its clients.
"What this offers our clients and our employees and potential employees is a broader set of opportunities we can offer," Kvam said.
This is Cognizant's third acquisition announced this month and its 12th since January 2020. It's one of the largest tech consultancies in the world and had revenues of $16.8 billion in 2019.
