Summary
Cognizant Technology Solutions Corporation announced on July 26, 2011, through an 8-K filing, a significant strategic acquisition and partnership. The company's subsidiary entered into a definitive agreement to acquire CoreLogic Global Services Private Limited ("CLI") for approximately $50 million in cash, subject to working capital adjustments. This acquisition is expected to close in August 2011. Furthermore, as part of this transaction, Cognizant will enter into a five-year Services Agreement with CoreLogic, Inc., which includes a minimum revenue commitment of $324 million, plus inflation adjustments. This agreement positions Cognizant to provide a comprehensive suite of services, including business process and analytics solutions, across the entire mortgage value chain, reinforcing its role as a key service provider in the industry.
Key Highlights
- 1Cognizant to acquire CoreLogic Global Services Private Limited (CLI) for approximately $50 million in cash.
- 2Acquisition is subject to customary closing conditions and expected to close in August 2011.
- 3Definitive agreement signed on July 26, 2011.
- 4A five-year Services Agreement will be entered into with CoreLogic, Inc. post-acquisition.
- 5Minimum revenue commitment of $324 million over five years from the Services Agreement, with renewal and extension rights.
- 6Cognizant will provide end-to-end business process and analytics solutions across the mortgage value chain.
- 7The transaction aims to expand Cognizant's service offerings and market presence in the mortgage and financial services sectors.