Collaborative Solutions Acquisition: Key Details, Impact, and What Comes Next

Cognizant's acquisition of Collaborative Solutions marks a significant move in the industry, enhancing its cloud offerings with specialized finance and HR advisory services. This strategic integration aims to leverage Collaborative Solutions' expertise in Workday applications, positioning Cognizant to better serve clients across various sectors, including financial services, healthcare, and education.

What Is Collaborative Solutions?

Founded in 2003, Collaborative Solutions specializes in transforming finance, HR, and student management programs using Workday. The company stands out in the market with its strong emphasis on diversity and inclusion, recognized by prestigious organizations like Fortune and Forbes. Collaborative Solutions offers comprehensive benefits, including career development and health plans, and hosts industry-focused events and roundtables, particularly for the public, healthcare, higher education, and non-profit sectors.

Who Acquired Collaborative Solutions?

Cognizant is a global professional services company that helps businesses modernize technology, reimagine processes, and transform experiences. They offer a wide range of services, including application services, automation, business process services, cloud solutions, and cybersecurity. Cognizant is recognized as a leader in the industry, with a strong presence in sectors like healthcare, banking, and manufacturing. Known for their deep industry expertise and innovative solutions, they play a pivotal role in driving digital transformation and AI adoption across various industries.

When Was Collaborative Solutions Acquired?

Cognizant announced its acquisition of Collaborative Solutions on May 5, 2020, and completed the transaction on June 11, 2020. This acquisition occurred during a pivotal time when the COVID-19 pandemic was accelerating the need for digital transformation and cloud solutions. The move aligns with industry trends emphasizing the importance of cloud-based applications for finance and HR, positioning Cognizant to better support clients in their digital transformation efforts.

Why Was Collaborative Solutions Acquired?

• Market Expansion: The acquisition of Collaborative Solutions enables Cognizant to broaden its market presence in the cloud services sector, particularly in finance and HR advisory and implementation services. Collaborative Solutions' global operations in the U.S., Australia, Canada, and the United Kingdom help Cognizant expand its geographical reach and client base across various industries, including financial services, healthcare, technology, government, and education.
• Technology Integration: Collaborative Solutions specializes in Workday enterprise cloud applications, which will be integrated into Cognizant's existing cloud offerings. This integration enhances Cognizant's capabilities in providing comprehensive cloud-based solutions for finance and human resources, leveraging Collaborative Solutions' expertise to offer clients greater resiliency and agility in their operations.
• Competitive Advantage: By acquiring one of the world’s largest Workday services partners, Cognizant gains a significant competitive advantage in the market for enterprise cloud applications. The combination of Collaborative Solutions' best-in-class services and Cognizant's extensive technology and industry expertise positions Cognizant to offer superior service offerings, thereby strengthening its position against competitors and providing full support to clients throughout their digital transformation journey.

Acquisition Terms

• Acquisition Price: The financial details of the acquisition were not disclosed.
• Payment Method: The payment method is not specified in the available announcements.
• Key Conditions or Agreements:
  • The transaction is expected to close in the second quarter of 2020.
  • Closing is subject to regulatory clearance and other closing conditions.
  • Collaborative Solutions will become Cognizant's new and only Workday practice.
  • Current points of contact and support structures will remain the same.
  • Current contractual agreements utilizing onshore resources will continue to be honored.

Impact on Collaborative Solutions

The acquisition of Collaborative Solutions by Cognizant has led to significant changes in operations and management. Collaborative Solutions has been integrated into Cognizant's structure, establishing a new practice area focused on Workday applications. This integration has brought over 1,000 employees from Collaborative Solutions into Cognizant, enhancing the company's capabilities in cloud strategy and enablement. The management structure has also seen adjustments to incorporate the new team, ensuring a seamless transition and continuity in service delivery.

In terms of product offerings and services, the acquisition has expanded Cognizant's portfolio by adding new finance and HR advisory and implementation services. Collaborative Solutions' expertise in Workday applications has been a valuable addition, allowing Cognizant to offer more comprehensive cloud-based solutions. Employee reactions have been generally positive, with key executives expressing enthusiasm about the merger. Customer reactions, while not explicitly detailed, are expected to be favorable given Collaborative Solutions' high customer satisfaction rate and the reassurance provided about maintaining service quality and support structures.

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