Cognizant acquires 3Cloud to boost global Azure expertise

Core Insights - Cognizant has finalized the acquisition of 3Cloud, a Microsoft Azure services provider, effective January 1, 2026, with the aim to enhance its capabilities in Azure, data, AI, and cloud-based application innovation [1][4] - The acquisition will add approximately 1,200 employees to Cognizant's workforce, including around 700 based in the US, and increase its roster of Azure-certified professionals to over 21,000 globally [1][2] Company Strategy - The integration of 3Cloud is expected to strengthen Cognizant's strategic partnership with Microsoft and enhance its enterprise-scale digital and AI transformation offerings [2][5] - Cognizant's CEO emphasized that the acquisition is a significant step towards becoming a leading AI builder for enterprises, leveraging 3Cloud's expertise in Azure, data, and AI [4] Financial Performance - 3Cloud has experienced significant growth under Gryphon Investors, with an average annual organic growth rate exceeding 20% since 2020 [3] - Financial details of the acquisition have not been disclosed [3] Market Context - The demand for AI-led business transformation using Microsoft Azure platforms is increasing, which aligns with Cognizant's strategy to broaden its portfolio of Azure-related services [5] - Microsoft's Azure and related cloud services reported a year-on-year growth rate of 40% in Q3 2025, indicating a robust market for cloud services [6]