CHENNAI: In line with the trend of IT outsourcing firms beefing up their digital practice with targeted acquisitions, Cognizant said on Thursday that it would acquire Zone, a London-based digital agency specialising in customer experience, digital strategy, technology and content creation.
The transaction is likely to close in the fourth quarter of 2017. However, financial details have not been disclosed.
“This acquisition will be another step forward as we grow our capabilities in the digital interactive space,” said Santosh Thomas, president - global growth markets, Cognizant.
According to the company, Zone’s capabilities in application development, user experience and content strategy will enhance Cognizant’s established digital interactive expertise in experience design, human science-driven insights, and analytics. “With Zone, Cognizant will expand its capacity for delivering digital interactive solutions to a broader base of C-suite decision-makers throughout the UK and Europe,” the statement noted.
Upon the close of the acquisition, Zone’s 220 digital agency experts will become part of the ‘Cognizant Digital Business’ practice.
The IT major has also announced it would have to lay off some of its legacy employees as it makes the transition. “The digital economy is all about content and context — the right content, to the right person, at the right time, via the right channel — to create meaningful experiences,” added Thomas.
Meanwhile, peers such as Wipro and Infosys have also lined up acquisitions of design and digital experience firms.
Inside Zone
Founded in 2000 and headquartered in London, Zone will now be part of a bigger picture within Cognizant. Its staff of 220 people will be consolidated into the Cognizant Digital Business practice, and its offices across London, Bristol and Cologne will remain in operation.
In a statement, Zone said its capabilities in application development, user experience and content strategy would enhance Cognizant’s digital offering.