Teaneck, New Jersey-headquartered software exporter Cognizant has added it has acquired digital transformation consultancy AustinCSI for an undisclosed sum, part of its inorganic growth strategy amid robust performance of its high-margin digital services vertical.

Cognizant’s digital revenues have been streaming in at over 50% of total revenue for several quarters now. In Q3, the company posted a 11% constant currency growth in digital revenue, beating overall revenue growth at 5.6% to $4.9 billion.

The acquisition by Cognizant reinforces its directional push towards expanding digital services. “This acquisition complements Cognizant’s technology prowess and vertical industry expertise, enriching advisory capabilities and delivering comprehensive digital strategy…” the company said in a release.

Cognizant’s growth has been robust in the Communications, Media and Technologies (CMT) vertical, which 10.4% last quarter even as its largest division Financial services posted a tepid 1.6% constant currency. The acquisition announced on Tuesday complements Cognizant on its strongest vertical now: CMT.

."Client demand for end-to-end digital strategy and industry-specific solutions continues to accelerate," said Michael Valocchi, Senior Vice President, Head of Cognizant Consulting and Americas Strategy. "AustinCSI has built a stellar reputation by improving business outcomes for some of the world's most recognizable brands, particularly in the telecommunications, media, technology and automotive sectors, markets where Cognizant is also strong,” he said.

The Dallas-bases AustinCSI has 175 consultants who assist design and deliver cloud and automation solutions to clients.

"We're excited by the opportunity to become part of Cognizant and combine our strengths in delivering advanced and transformative technologies to clients," said Karen Moree, CEO of AustinCSI.

Cognizant also continues to invest in expanding capabilities in four key technology areas: data and artificial intelligence, cloud, digital engineering, and Internet of Things, the company release said.

The transaction is expected to close in the fourth quarter of 2022, subject to satisfaction of closing conditions.