 "Cognizant to acquire KBC Group's subsidiary ValueSource NV")
A day after announcing acquisition of France-based Equinox Consulting, the IT major Cognizant today announced that it has been selected by the KBC group, an integrated bank insurance group, as a strategic partner to optimise service delivery and drive customer engagement. As part of the deal the company will acquire ValueSource NV, a subsidiary of KBC.
The company did not disclose the valuation. Under an initial five-year agreement, Cognizant will deliver application development, application maintenance, and testing services to KBC.
"Cognizant will combine its global talent base, deep local business insight, and global best practices to help KBC achieve greater levels of operational efficiency, business agility, and governance, while realizing its business objectives and enhancing competitiveness," said the company release.
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As part of the deal, Cognizant will acquire ValueSource NV, a subsidiary of KBC, with about 170 ValueSource employees who will transfer to Cognizant.
“The agreement will offer ValueSource the necessary economies of scale required to remain competitive in the demanding ICT market, while building on the knowledge and expertise acquired over the years with the KBC platform. Leveraging Cognizant’s expertise, experience and consulting-led approach will give us the flexibility required to deal with both current and future ICT maintenance and development needs,” said Rudi Peeters, Senior General Manager and Chief Information Officer of the KBC group in a statement.
Santosh Thomas, Senior Vice-President and Head of Continental Europe and Asia-Pacific for Cognizant added, besides ensuring continuing productivity and operational improvements using our application development and maintenance frameworks, Cognizant will help KBC unlock incremental efficiencies from its business systems and leverage those savings to fund strategic initiatives and drive future growth.