Cognizant to Acquire 3Cloud, Creating a Leading Force in Microsoft Azure Services and Enterprise AI Transformation

• Advances Cognizant's AI builder strategy, empowering clients to rapidly build, deploy, and scale enterprise AI solutions on modern infrastructure geared towards AI-driven operations.
• Will combine 3Cloud's Azure, data and AI, and app innovation expertise with Cognizant's global scale, technology frameworks and industry expertise to create one of the largest global Microsoft partners.
• Will establish one of the most  credentialed Microsoft AI partners, with 21,000+ Azure-certified specialists and dozens of awards, including Microsoft's 2025 U.S. SI Partner of the Year and U.S Channel Partner of the Year.

TEANECK, N.J., Nov. 13, 2025 /CNW/ -- Cognizant (NASDAQ: CTSH) has entered into a definitive agreement to acquire 3Cloud, one of the largest independent Microsoft Azure services providers and a global leader in Azure-dedicated AI enablement solutions. The acquisition will strengthen Cognizant's role as a strategic partner for enterprise AI readiness and digital transformation by adding 3Cloud's advanced capabilities in data and AI, app innovation, and cloud platforms for enterprise clients.

Cognizant to acquire leading Microsoft Azure and AI enablement services provider, 3Cloud.

The acquisition will significantly expand Cognizant's Azure portfolio and deepen its expertise in complex, engineering-intensive engagements that enable AI-led business transformation. 3Cloud serves a predominantly enterprise-scale client base across banking and financial services, healthcare, technology, and consumer sectors. Since 2020, 3Cloud has delivered 20% organic compound annual growth, with 20%+ growth expected in 2025, driven by strong demand for Microsoft Azure-powered business transformation. Microsoft reported that Azure and other cloud services grew at 40% year-on-year in Q3 2025 (MSFT Q1 FY26).

"This acquisition marks a pivotal step in Cognizant's strategy to empower our clients for the future of enterprise AI," said Ravi Kumar S, CEO of Cognizant. "3Cloud's deep Azure expertise, industry-aligned approach and longstanding Microsoft partnership will enable us to deliver even greater value to our clients as they accelerate their AI journeys. Together, we are poised to set a new standard for innovation and impact in the Azure ecosystem."

Cognizant's approach to enterprise AI focuses on empowering organizations to build, deploy and scale AI solutions rapidly. By integrating 3Cloud's Azure and data and AI expertise with Cognizant's proven platforms and technology frameworks, clients stand to benefit from an end-to-end ecosystem that accelerates AI innovation. Upon closing of the acquisition, 3Cloud will add 1,000+ Azure experts and engineers and 1,500+ Microsoft certifications to Cognizant's capabilities, and 3Cloud's nearly 1,200 employees, including approximately 700 in the United States, will join Cognizant's nearly 20,000 Azure-certified associates globally.

"Being a part of Cognizant will unlock new opportunities for our clients and employees," said Mike Rocco, CEO of 3Cloud. "Our shared vision for driving enterprise AI readiness and our combined strengths in cloud, app innovation, and data will help our clients realize the full potential of Azure, now at a global scale. We look forward to shaping the future of intelligent business together."

"Microsoft Azure is the platform of choice for AI transformation, and Cognizant's acquisition of 3Cloud will create one of the most capable and credentialed partners in the Azure ecosystem," said Judson Althoff, Chief Executive Officer of Microsoft's Commercial Business. "We are excited by the potential this acquisition brings to our mutual customers, enabling them to harness the power of Azure and AI to drive business innovation at scale."

Founded by former Microsoft executives, 3Cloud brings decades of experience and a proven record of technical excellence, earning multiple Microsoft Partner of the Year awards and industry accolades.

The combination of 3Cloud and Cognizant will also create one of the largest global partners to Microsoft in terms of influenced Azure Consumption Revenue, and further enhance Cognizant's longstanding status as a strategic Microsoft partner.

3Cloud's offerings and delivery model are purpose-built to optimize the value of Microsoft's Azure pipeline through an Azure-certified core global delivery team with a proven track record in modern data platforms, cloud-native AI app development, advanced analytics and managed services. 3Cloud is also an Elite Databricks partner, recognized for its deep expertise in data and AI programs that help clients unlock next-generation insights.

3Cloud has been recognized as a top Microsoft Azure partner worldwide, earning multiple Partner of the Year Awards across categories such as Data & AI, Health & Life Sciences, Migration to Azure, Solution Assessments, and Modernizing Applications. Its consistent recognition – including the 2025 Microsoft U.S. Channel Partner of the Year and the 2024 Americas Partner of the Year for Data and AI –underscores its leadership in delivering innovative, high-impact Azure solutions for enterprise clients. Cognizant has also received top honors from Microsoft, most recently the 2025 Intelligent Automation Partner of the Year, Americas SI Partner of the Year, U.S. SI Partner of the Year, and GitHub AI Services Partner of the Year awards.

The acquisition is expected to close in the first quarter of 2026, subject to the receipt of required regulatory approvals and other closing conditions. Financial details were not disclosed.

About Cognizant
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at www.cognizant.com or @cognizant.

About 3Cloud
3Cloud is a "born in the cloud," Gold-certified Microsoft Azure technology consulting firm and Azure Expert Managed Services Provider that provides cloud strategy, design, implementation, and managed services to clients across multiple industries. Founded by former Microsoft executives, 3Cloud combines a team of highly-experienced cloud architects and technologists with a strong network of Microsoft sales and engineering relationships to deliver the ultimate Azure experience for clients. 3Cloud has been recognized as a top Microsoft Azure partner worldwide, earning multiple Microsoft Partner of the Year Awards across categories such as Data & AI, Health & Life Sciences, Migration to Azure, Solution Assessments, and Modernizing Applications. 3Cloud has more than 1,000 Azure experts and engineers and 1,500+ Microsoft certifications. 3Cloud is headquartered in Chicago, Illinois with offices in Dallas, Texas and supports clients throughout North America.

3Cloud is a portfolio company of Gryphon Investors.

Advisors
Mayer Brown served as legal advisor to Cognizant. Lazard, Inc. served as financial advisor to Gryphon Investors and Kirkland & Ellis LLP served as legal advisor.

Forward Looking Statements 
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to the business of 3Cloud, including the expected growth; the anticipated benefits of the proposed transaction, including anticipated benefits relating to synergies, new business opportunities, and growth; the expected timing of the transaction closing; the combined company's plans, objectives, expectations, and intentions; and other statements that are not historical facts. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ materially from those expressed or implied include the risk that the expected benefits from the transaction may not be fully realized or may take longer than anticipated to be realized; disruption to the parties' businesses as a result of the announcement and pendency of the transaction; the ability to obtain required approvals of the transaction on the timeline expected, or at all, and the risk that such approvals may result in the imposition of conditions that could adversely affect us after the closing of the transaction or adversely affect the expected benefits of the transaction; reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the transaction; the failure of the closing conditions in the transaction agreement to be satisfied, or any unexpected delay in closing the transaction or the occurrence of any event, change or other circumstances that could give rise to the termination of the transaction agreement; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; risks related to management and oversight of the expanded business and operations of Cognizant following the transaction; the risk that combining 3Cloud's business and operations into Cognizant will be more costly or difficult than expected, or that we are otherwise unable to successfully integrate 3Cloud's businesses with our own, including as a result of unexpected factors or events; and general competitive, economic, political and market conditions and other factors that may affect our future results or that of 3Cloud, including general economic conditions, the competitive and rapidly changing nature of the markets we compete in, the competitive marketplace for talent and its impact on employee recruitment and retention, our ability to successfully use AI-based technologies, legal, reputational and financial risks resulting from cyberattacks, changes in the regulatory environment, including with respect to immigration and taxes. Additional factors which could affect future results are discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

SOURCE Cognizant Technology Solutions