Cognizant has acquired 10th Magnitude, a Microsoft Azure cloud MSP and Top 200 Public Cloud MSP that had been backed by private equity firm Pamlico Capital. Financial terms of the deal were not disclosed.
This is M&A deal 350 that ChannelE2E has covered so far in 2020. See the full M&A deal list here.
10th Magnitude is a Microsoft Gold Partner and one of 70 certified Azure Expert Managed Service Providers (MSPs) worldwide. The deal is expected to close in Q3 of 2020. At that time, 10th Magnitude's Azure experts will tuck into Cognizant's own Microsoft Business Group.
10th Magnitude, founded in 2010, has been growing rapidly. Revenues have surged 186 percent over the past three years, according to the Inc. 5000 list -- though actual dollar figures were not disclosed. The MSP's advisory and managed services span data center transformation, application modernization, and data intelligence with AI-driven analytics and insights, the buyer says.
Pamlico Capital, a private equity firm, invested an undisclosed sum in 10th Magnitude back in 2016.
Cognizant Acquires 10th Magnitude: Executive Perspectives
In a prepared statement about the deal, Greg Hyttenrauch, president, Cognizant Digital Systems and Technology, said:
"Modernizing business platforms by shifting to the cloud is a key priority for our clients. The acquisition of 10th Magnitude underscores our commitment to Microsoft, one of our leading strategic partners, and will further strengthen our ability to provide Azure expertise to our clients as they embrace the cloud. We are excited to unlock the power of this acquisition and to welcome 10th Magnitude's outstanding team to Cognizant."
Added Alex Brown, CEO, 10th Magnitude:
"Hyperscale cloud infrastructures are enabling organizations to be more agile and improve their business performance to better serve customers. The ability to pivot, innovate, remain flexible and resilient, with remote access to key applications, is especially important in these uncertain times. Our award-winning Azure experts have been helping organizations to securely move to and grow within the cloud for more than a decade. With Cognizant, we will be able to offer greater scope and scale to help our clients use an open and highly-adaptable cloud computing platform to compete more effectively."
Cognizant Acquisitions: The 2020 Deal List So Far
This is Cognizant's seventh acquisition in 2020. The other deals involved:
- August 2020: Tin Roof Software for custom software development
- July 2020: New Signature, a Microsoft Azure Expert MSP.
- May 2020: Workday SaaS partner Collaborative Solutions.
- March 2020: Salesforce cloud partner Lev.
- February 2020: Code Zero for cloud-based CPQ and billing consulting.
- February 2020: Salesforce partner El Technologies.