Full Speed Ahead: Cognizant Buys Top Oracle Cloud Partner

Cognizant Technology Solutions has acquired a leading Oracle cloud channel partner, the solution provider giant said Wednesday.

Cognizant -- No. 8 on CRN’s Solution Provider 500 list for 2015 -- said it bought privately held KBACE Technologies, Nashua, N.H. Terms of the transaction were not disclosed.

Cognizant, based in Teaneck, N.J., said KBACE has one of the largest bases of Oracle cloud application customers. Founded in 1998, the company was honored by Oracle for three straight years from 2013 to 2015 as the vendor's specialized partner in North America for implementation of its human capital management applications.

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The deal "strengthens and expands Cognizant's digital capabilities as more clients move critical business applications to cloud-based IT infrastructures to reduce costs and complexity and improve business agility,’ Cognizant said in a statement on the acquisition.

Cognizant said it will retain KBACE's approximately 400 consultants and implementation experts.

Allen Shaheen, an executive vice president at Cognizant, said in the statement that the deal will accelerate Cognizant's cloud strategy and consulting services while providing clients with access to "significant platform expertise," pushing the company to the "forefront" of Oracle cloud partners and technology consultants.

"KBACE consultants are some of the most talented and experienced in the industry with many regarded as the predominant subject-matter experts in their area," Shaheen said.

In a statement on KBACE's website Wednesday, company co-founder and President Mike Peterson said KBACE is "thrilled" to become part of Cognizant and said the deal will allow the company to continue to "grow and provide leading solutions" within Cognizant's cloud practice.

Cognizant has been on a financial roll. For the third quarter of last year, it reported a 23.5 percent year-over-year jump in revenue to $3.19 billion, as well as an 11 percent increase in net income, to $397.2 million. In that same quarter, the company added about 1,300 jobs, bringing its global head count to 219,300. CEO Francisco D'Souza said he expected the company to add even more jobs.

Cognizant also raised its full-year guidance for 2015 with a jump in revenue of at least 19.3 percent, to $12.24 billion, over 2014. The company is scheduled to release its fourth-quarter numbers Feb. 8.

"As our mutual clients compete in the digital economy, SaaS applications are the enabling technology foundation for enterprises of all sizes," Peterson said in the Cognizant statement. The acquisition also allows KBACE to "further strengthen our relationship with Oracle to meet the needs of current and prospective clients worldwide," he added.