Houlihan Lokey Advises Magenic Technologies

Houlihan Lokey is pleased to announce that Magenic Technologies, Inc., a privately held custom software development services company headquartered in Minneapolis, Minnesota, has been acquired by Cognizant (NASDAQ:CTSH). The transaction closed on February 1, 2021.

The acquisition will expand Cognizant’s software product engineering footprint, adding 475 employees in the U.S. across seven locations and more than 350 employees in Manila, Philippines. Upon completion of the acquisition, Magenic associates will become part of Cognizant Softvision, connecting Magenic’s expertise with Cognizant’s global software development capabilities.

Magenic provides Agile software and cloud development, DevOps, experience design, and advisory services. Custom solutions for Fortune 500 clients and others include re-architecting and migrating products to the cloud, building customer-facing web apps, creating APIs, and designing secure payment processing systems. The company works across a range of industries, including financial services, professional services, insurance, pharmaceutical, and manufacturing.

Magenic is Cognizant’s third acquisition in 2021, and the twelfth announced since January 2020, to expand in key strategic focus areas—digital engineering, data and artificial intelligence, the cloud, and the Internet of Things—that provide clients with capabilities to compete as modern digital businesses. Cognizant is among the world’s largest digital engineering firms, and Magenic is Cognizant’s second digital engineering acquisition in recent months; Cognizant acquired Tin Roof, a custom software and digital product development services company, in September 2020.

Cognizant acquired Austin, Texas–based Softvision, a leader in developing custom digital products using collaborative engineering methods, in 2018. With Magenic, Cognizant Softvision will double its number of development sites in the U.S. as well as add the Philippines to its broader global network of existing studios in Argentina, Australia, Canada, India, Mexico, and Romania.

Magenic was named one of the 10 Most Promising Microsoft Azure Solution Partners by CIOReview in 2020 and has been recognized eight times by Minnesota’s Star Tribune as one of the top workplaces in the state.

Houlihan Lokey served as the financial advisor to Magenic Technologies.