Cognizant acquires US digital video solutions company, Itaas
23 Apr 2014
Cognizant yesterday announced that it had entered into a definitive agreement to acquire Itaas, a digital video solutions company headquartered in Atlanta, Georgia. The terms of the transaction were not disclosed.
Founded in 1999, Itaas enables broadcasters and television providers deliver live streaming and video services on digital platforms.
With approximately 200 professionals in the US, Canada, and India, Itaas enables television providers and broadcasters, particularly cable channels, to deliver authenticated live streaming and video services on digital platforms, thus adding value to existing television subscriptions and delighting subscribers with exclusive viewing experiences anytime, anywhere, and on any device.
As more viewers look to access internet video content directly via TV, communications businesses are seeking out open platforms to reduce time-to-market, while digital device companies are focusing on bundling content with connected devices.
The acquisition will enable Cognizant to capitalise on the growing demand for greater interactivity, higher personalisation, and innovative content delivery in the multi-screen and video market.
The end-to-end digital video engineering and multi-platform capabilities of Itaas will extend and complement Cognizant's existing capabilities serving the communications, media, and hi-technology industries.
The expanded capabilities will also support Cognizant's clients in other industries such as banking, retail, and healthcare, which are rolling out advanced customer and business platforms centered on video.
"We welcome Itaas' talented professionals to Cognizant," said Rajeev Mehta, chief executive officer of IT Services at Cognizant. "This acquisition continues our long-standing strategy of acquiring sharply focused business capabilities that complement our existing offerings. The company's strong client focus and deep business and technology insights into the entire video ecosystem, combined with Cognizant's global consulting and delivery capabilities, will create greater value for our mutual clients.
"As multiplatform video becomes the new normal, new technologies create more empowered and savvy consumers, and more industry sectors look to harness the potential of video for customer interaction, this acquisition strengthens our ability to help enterprises challenge the status quo, and create new business models in response to market shifts and competitive pressures in their industry segments."
"We are delighted to join Cognizant," said Vibha Rustagi, president and CEO, Itaas. "The success of Itaas over the last 15 years has been built on customer satisfaction, deep business and technology expertise, and best-of-breed solutions. Cognizant's global reach, experience, and entrepreneurial culture will allow us to offer our current and future customers greater scale, a broader range of services, comprehensive solutions, and world-leading consulting and delivery expertise.
"International expansion is critical for us to continue our strong growth and provide greater opportunities for our employees. The agreement announced today is a major step forward for us. With a shared commitment to client satisfaction and delivery excellence, we can drive future diversification based on our combined strengths."
Itaas has development centres in Noida and Chennai in Indiand has offerred its services toCisco, Comcast, Cox Communications, Charter and Time Warner Cable among others.
"The acquisition will enable Cognizant to capitalise on the growing demand for greater interactivity, higher personalisation and innovative content delivery in the multi-screen and video market," Cognizant said in a statement.
The end-to-end digital video engineering and multiplatform capabilities of Itaas will extend Cognizant's existing capabilities serving the communications, media, and hi-tech industries.
According to Mehta, Cognizant's strategy is to "acquire for capability and not capacity".
"We continue to focus on organic growth and make strategic tuck-under acquisitions to help expand our geographic footprint, enhance our solutions spectrum, and strengthen our domain and consulting capability.
"While our definition of tuck-under is up to $200 million in target company revenue, the sweet spot is between $20 million and $80 million," he added.
Cognizant has made acquisitions like Equinox in France and six companies of the C1 Group in Germany, MediCall and PIPC in the past.
The expanded capabilities will also help Cognizant support other industries like banking, retail, and healthcare, which are rolling out advanced customer and business platforms centered on video.
"Cognizant's global reach, experience and entrepreneurial culture will allow us to offer our current and future customers greater scale, a broader range of services, comprehensive solutions, and world-leading consulting and delivery expertise," Rustagi said.