Cognizant to acquire tech firm Astreya for $600mn

Bengaluru: In a bid to fortify its AI infrastructure capabilities, Cognizant is acquiring Astreya, a tech steadfast specialising successful AI infrastructure and information centre services, successful a woody valued astatine astir $600 cardinal - its third-largest acquisition aft Trizetto and Belcan.

Astreya manages implicit 500,000 extremity users and supports astir 30% of the world's information centres for ample enterprises. "Between 2025 and 2030 determination is simply a projected $6.7 trillion AI information centre infrastructure buildout presently reshaping the planetary exertion landscape, with planetary capableness expected to treble successful 5 years. By acquiring Astreya..., we volition beryllium adjacent better-positioned to assistance clients designer their platform-led AI systems and operationalise them astatine scale," said CEO Ravi Kumar.Additionally, the institution rolled retired a planetary programme, Project Leap, and expects to incur costs of $230 cardinal to $320 million, recognising astir of these expenses successful 2026. This includes $200 cardinal to $270 cardinal successful worker severance costs. Sources said the inaugural could impact thousands of roles implicit the adjacent 8 months, including successful India, which accounts for a ample stock of the company's workforce.

While Cognizant's absorption declined to disclose the fig of employees apt to beryllium impacted erstwhile TOI asked, manufacture estimates suggest that each $100 cardinal successful restructuring costs could construe into astir 10,000 jobs. "This programme aims to hole america for the aboriginal operating model, and we volition execute it with the aforesaid absorption and vigor arsenic immoderate different strategical priority. It's arsenic important," CFO Jatin Dalal said during the net call.For the March quarter, Cognizant reported gross of $5.4 billion, up 5.8% year-on-year successful dollar presumption and 3.9% successful changeless currency.