On June 10, 2024, Cognizant signed a definitive agreement to acquire Belcan, LLC, a leading supplier of Engineering Research & Development (ER&D) services, for approximately CAD 1.7 billion ($1.3 billion USD) in cash and stock, subject to customary adjustments. This acquisition aims to enhance Cognizant's ER&D capabilities and strengthen its leadership in IoT and Digital Engineering. The deal will enable Cognizant to establish a significant presence in the aerospace and defense sectors with a client base in North America and the UK. Belcan, which has over 6,500 engineers and technical consultants, will continue to operate under its name as an operating unit of Cognizant.

The acquisition is expected to close by September 30, 2024, pending regulatory approvals. Cognizant anticipates over CAD 800 million in annual revenue from the acquired business by 2024. This deal is projected to be EPS neutral in 2025 and accretive in 2026, with over CAD 130 million ($100 million USD) in annual revenue synergies within three years.

Both companies have a significant presence in Canada, with Cognizant expanding its operations, including a new service delivery center in Halifax, Nova Scotia, and existing offices in Toronto and Mississauga. Belcan serves various sectors in Canada, providing mission-critical engineering services.

Perella Weinberg Partners served as financial advisor and Arnold & Porter and Stikeman Elliott served as legal advisors to Cognizant. Jefferies and Solomon Partners acted as financial advisors, with Kirkland & Ellis providing legal counsel to Belcan.