Cognizant makes UK acquisition to expand IoT services

The takeover comes weeks after Cognizant’s new CEO took the helm

Cognizant has entered a deal to buy IoT software engineering services provider Mobica.

The acquisition comes a few weeks after Cognizant hired former Infosys veteran Ravi Kumar S as its new chief exec to replace outgoing CEO, Brian Humphries.

Headquartered in Manchester, Mobica's services span the full software development cycle, offering services in development, implementation, testing and deployment of embedded software, and a specialisation in clients' strategic internal research and development projects.

It is billed as a Microsoft IoT edge solutions partner, is part of chipmaking vendor ARM's partner ecosystem and also works with Apple.

The addition of Mobica ramps up Cognizant's IoT embedded software engineering capabilities and provides clients with a broader array of end-to-end support to enable digital transformation.

Embedded software engineering was earmarked as a fast-growing segment of the IoT and engineering market by IDC, which predicts global product engineering spending to grow from $83bn in 2021 to $164bn by 2026.

An Eastern European footprint

"Mobica's strong track record of delivering strategic embedded software engineering services is well-aligned to Cognizant's Global 2000 client base and key industries, while its large presence in Poland significantly enhances our growing development teams in Eastern Europe," said Cognizant executive VP of core technologies and insights, Annadurai Elango.

"We believe combining Mobica's expertise with Cognizant's strong IoT and product engineering capabilities will result in enhanced digital transformation outcomes for global clients in the technology and automotive industries and beyond."

The acquisition is expected to close in February and will add nearly 900 people across Europe and North America, including 550 engineers in Poland, to Cognizant's headcount.

Sam Kingston, CEO of Mobica, added: "Mobica has built a reputation for world-class IoT embedded software engineering expertise across the entire technology stack, from chip to cloud.

"The alignment we share with Cognizant from a technology, industry and client-focus standpoint represents a strong platform for continued growth in Europe and North America, and an opportunity for our talented team to grow their skills and careers."