Cognizant buys US firm for $19m

The deal also provides for a performance-based payment of up to $16 million payable in cash two years from the closing of the acquisition deal.

Fathom Solutions is a privately held consulting company founded in 1999 by former Accenture executives.

Its clients include major industry players in telecommunications and financial services. According to a company release, in acquiring Fathom, Cognizant gains complementary offerings and expertise that strengthens its consulting practice in the telecommunications and financial services industries.

"The acquisition represents part of our successful ongoing strategy to combine industry-focused IT consulting with our onsite/ offshore model," said Cognizant, president and CEO, Lakshmi Narayanan in the release.

"Fathom's strong industry consulting expertise will help Cognizant build deep partnerships with leading telecommunications services customers. In addition, Fathom's IT strategy capabilities will provide Cognizant with the opportunity to engage earlier in a customer's decision cycle," he added.

According to a company spokesperson, Cognizant expects most of the 120 staff of Fathom to join its global workforce which stands at 17,000.

Fathom CEO Jeff Lee will join Cognizant as its managing director of telecom services for North America. The spokesperson added that the integration process between both the company has been initiatied and refrained from divulging when it would be complete. Fathom Solutions was represented in this transaction by Innovation Advisors, a technology-focused investment bank.