Bengaluru: In a strategic move to bolster its artificial intelligence infrastructure capabilities, Cognizant has announced the acquisition of Astreya, a technology firm specializing in AI infrastructure and data center services. The deal is valued at approximately $600 million, making it the company's third-largest acquisition after Trizetto and Belcan.
Details of the Acquisition
Astreya currently manages over 500,000 end users and supports nearly 30% of the world's data centers for large enterprises. The acquisition positions Cognizant to capitalize on the massive growth in AI data center infrastructure. According to CEO Ravi Kumar, "Between 2025 and 2030 there is a projected $6.7 trillion AI data centre infrastructure buildout currently reshaping the global technology landscape, with global capacity expected to double in five years. By acquiring Astreya..., we will be even better-positioned to help clients architect their platform-led AI systems and operationalise them at scale."
Project Leap: A Global Restructuring Program
Alongside the acquisition, Cognizant has launched a global program called Project Leap. The company expects to incur costs between $230 million and $320 million for this initiative, with most expenses recognized in 2026. This includes $200 million to $270 million in employee severance costs. Sources indicate that the program could affect thousands of roles over the next eight months, including positions in India, which accounts for a large share of Cognizant's workforce.
When questioned by The Times of India, Cognizant's management declined to disclose the exact number of employees likely to be impacted. However, industry estimates suggest that every $100 million in restructuring costs could translate into roughly 10,000 jobs. CFO Jatin Dalal stated during the earnings call, "This programme aims to prepare us for the future operating model, and we will execute it with the same focus and energy as any other strategic priority. It's equally important."
Financial Performance
For the March quarter, Cognizant reported revenue of $5.4 billion, representing a year-on-year increase of 5.8% in dollar terms and 3.9% in constant currency.
