Cognizant buys Frontica Business Solutions for $126 million

Cognizant has acquired Norwegian IT and BPO service provider Frontica Business Solutions for nearly 1.02 billion Norwegian Krone, which would be about $128 million.

The company is looking at expanding its business in the northern Europe.

Frontica offers IT solutions in oil and gas sector. It employs over 1,000 workers and is owned by Akastor ASA, a Norway-listed oil service investment company.

Frontica expanded its business pipeline on a large scale in 2016 by entering into long term agreements with key clients into 2021. Frontica giving a total order backlog of 5.1 billion Norwegian krone at the end of the second quarter 2016.


"The acquisition helps us strengthen our oil and gas industry expertise, expand our presence in key markets, and deepen and broaden our service portfolio for our clients. Frontica will play a key role in helping us realize these benefits through their specialized capabilities in serving the oil and gas industry,, Santosh Thomas, President Global Growth Markets at Cognizant said in the statement.

The acquisition was released after three days of the US-listed IT company saying that it was probing whether certain payments made in India had violated the US Foreign Corrupt Practices Act, causing its shares to crash.
(image:indiatimes)