Hyderabad, October 16: US-based tech company Cognizant has acquired the India-based captive business process outsourcing (BPO) of UBS. UBS currently employs 2,000 people at its BPO.
Cognizant has entered a multi-year services agreement with UBS.
Cognizant in its 8k filings in the US SEC has said that it has bought the BPO for USD 75 million and it is under a five year deal with some close to USD 442 million which it expects to get from UBS. This is a 2,000 people strong center in Hyderabad that Cognizant has acquired and it will offer KPO-BPO and remote infrastructure management services to the Swiss Bank.
We had reported on October 6 that Genpact, Cognizant and Zensar were in the race for this BPO. We had then, in fact, reported that Genpact had bid a 10% premium to the market value to the UBS BPO which at that time was USD 70 million and Genpact had emerged as a second highest bidder but what went against that bid was that it was largely in stock.
The cash component was pretty less whereas Cognizant’s bid was entirely in cash and that seems to have done the wonders for Cognizant and it has managed not only to bag a large deal but also a very well scaled center Hyderabad.
-Agencies