Cognizant acquires U.S. consulting firm
By agencies   |   Tuesday, 19 April 2005, 19:30 IST
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CHENNAI: With the objective of expanding its industry expertise, Nasdaq-listed Cognizant Technology Solutions, a provider of IT services, has acquired Fathom Solutions LLC, U.S.based IT consulting firm focusing on telecom and financial services sectors. Cognizant has acquired Fathom for an initial consideration of $19 million in cash and stock. The deal also provides for a performance based cash payment of up to $16 million on the two-year anniversary of the closing, the company said. In acquiring Fathom, which has staff strength of 120, Cognizant gains complementary offerings and expertise that strengthen Cognizant’s consulting practice in the telecom and financial services sectors, it said. "Fathoms strong industry consulting expertise will help Cognizant build deep partnerships with leading telecom services customers and its IT strategy capabilities will provide us with the opportunity to engage earlier in a customers decision cycle," president and CEO, Lakshmi Narayanan said. Founded by former Accenture executives in 1999, Fathom brings a track record of high customer retention, with repeat business accounting for over 90 percent of revenues in the past two years. "Our proven strategy expertise and consulting strengths coupled with Cognizant’s leading offshore delivery capabilities provide clients with a unique and cost-competitive partner for delivering large end-to-end programs," CEO of Fathom

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