Cognizant (CTSH) recently announced that the company acquired substantially all of the assets of Princeton, N.J.-based Zaffera, LLC, a strategic SAP retail consulting and software development firm.
The financial terms of the deal were not disclosed. Employing more than 100 professionals, Zaffera enables the world's top retail brands to navigate the rapid changes in the retail sector driven by new technology and demographic shifts.
Zaffera has developed a portfolio of SAP retail solutions and accelerators in areas such as business analytics, retail planning, point-of-sale (POS) integration, and store operations to help retailers with real-time visibility into product details.
Management expects that the acquisition will enable Cognizant to provide industry-focused SAP consulting and software solutions to help major retailers gain better insights into their business, streamline operations, enhance customer satisfaction, and improve responsiveness to changing market conditions.
Earlier, Cognizant was selected by the UK Financial Services Authority (FSA) to be a key supplier as part of its Strategic Outsourcing Framework Agreement (SOFA). The FSA is a leading independent body that regulates the financial services industry in the UK. Employing more than 1.1 million people, FSA oversees more than 29,000 firms, which contribute over 6.8% of GDP.
Management stated that as a key supplier, Cognizant will help the FSA improve the reliability, scalability and flexibility of the IT systems and solutions that support the FSA's market surveillance operations, supervisory analysis and risk management functions.
Cognizant has been awarded five service areas which cover solutions consultancy, application development, application maintenance, testing, and web design and hosting and will initially support a key market surveillance application used by the FSA to monitor compliance with the Markets in Financial Instruments Directive.
We continue to maintain a Neutral recommendation on Cognizant. However, we currently have a Zacks #2 Rank for the stock, which translates into a short-term rating of Buy as we expect strong results in the forthcoming quarter.
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