Cognizant to buy Mobica to enhance its IoT software engineering service offerings By CIOTechOutlook Team

Cognizant to buy Mobica to enhance its IoT software engineering service offerings

CIOTechOutlook Team | Tuesday, 24 January 2023, 04:37 IST

Cognizant has agreed to acquire Mobica, a provider of IoT software engineering services based in Manchester, United Kingdom. Mobica's services cover the entire software development cycle, with core competencies in embedded software development, implementation, testing, and deployment, as well as a focus on clients' strategic internal research and development projects.

The acquisition significantly expands Cognizant's IoT embedded software engineering capabilities and provides clients with a deeper and broader range of end-to-end digital transformation support. Embedded software engineering is a rapidly expanding market segment in the IoT and engineering markets. According to market research firm IDC, global product engineering spending will rise from $83 billion in 2021 to $164 billion by 2026. 1

Cognizant will add nearly 900 people across Europe and North America as a result of the acquisition, including approximately 550 engineers in Poland.

"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 Annadurai Elango, executive vice president of Cognizant's Core Technologies and Insights. "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."

Mobica's expertise in three key areas - connected devices and digital transformation, silicon and technology platforms, and automotive and intelligent mobility - is expected to strengthen Cognizant's client offerings and position as an enterprise digital transformation strategic partner.

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

Mobica expands on Cognizant's previous efforts to establish strategic capabilities in Eastern Europe, which included the acquisitions of Softvision in 2018 and Devbridge in 2021, both of which have significant software product engineering operations in Romania and Lithuania, respectively. Cognizant will have over 7,500 associates in Eastern Europe after acquiring Mobica, including approximately 4,500 engineers.

The acquisition is expected to close in February 2023, assuming all closing conditions are met. Financial information was not provided.