Cognizant to acquire life sciences consultancy Zenith Technologies

21 June 2019 Consulting.us

Management and technology consultancy Cognizant announced its intention to acquire Zenith Technologies. The Cork, Ireland–based firm specializes in the digital transformation of life sciences manufacturing facilities.

Like other manufacturers, pharmaceutical and medical devices firms are embracing emerging technologies like the Internet of Things and automation and analytics to enhance efficiency and flexibility. Zenith Technologies helps life sciences clients manage, control, and optimize production through connected “smart factories” that leverage their custom manufacturing lifecycle software.

The firm’s service lines include consulting, manufacturing, digital and automation systems integration, and manufacturing site services. Founded in 1998, Zenith has more than 800 employees across five continents and 16 offices, and has worked with nine of the world’s 10 largest biopharmaceutical manufacturers.

Cognizant will look to boost its capabilities in the design, implementation, and management of end-to-end operational and IT systems for pharma and medical devices manufacturers through the forthcoming acquisition of Zenith. Pending regulatory review, the transaction is expected to close in Q3 2019.

"Industry 4.0 solutions, encompassing Internet of Things (IoT), automation and analytics, are a strategic focus area for Cognizant," Brian Humphries, CEO of Cognizant, said. "In acquiring Zenith Technologies, we expand Cognizant's IoT portfolio and extend our life sciences domain expertise by becoming a single-source provider of end-to-end smart factory capabilities.”

The deal will merge Zenith with Cognizant’s life sciences business unit, which delivers Industry 4.0 capabilities, factory design consultation, data acquisition, and ERP implementation services, among others.

The Zenith acquisition is the first one announced by Cognizant since Humphries took over as CEO in April.

Reports surfaced in May that the New Jersey–headquartered IT consultancy would be looking to cut a number of mid-level jobs in India, where approximately 70% of its 285,000-person workforce is located. Following lower than expected year-over-year revenue growth (5.1%) and missing expected earnings per share by 13 cents, Cognizant will look to cut costs and restore growth. That will likely mean eliminating a number of mid-level jobs – the size of which is yet to be determined – and keeping a tighter control on pay increases and bonuses, according to a report from The Economic Times.

Related: Cognizant announces expansion of R&D partnership with Aveva


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