Cognizant acquires Astreya for $600 million to strengthen AI infrastructure capabilities

Cognizant to buy Astreya for about $600 million

April 29 (Reuters) - Cognizant Technology (CTSH.O), opens new tab has agreed to buy Astreya, an IT services and technology provider focused on AI infrastructure and data center services, in a deal valued at around $600 million, the company told Reuters. The deal is expected to strengthen Cognizant's AI infrastructure capabilities, as companies ramp up spending on the technology that is reshaping industries. The deal, expected to close in the second quarter of 2026 pending regulatory approvals, is likely to be announced on ⁠Wednesday. Cognizant has benefited from enterprise clients accelerating AI integration and automation as they migrate workloads to the cloud. The company has expanded partnerships with Microsoft (MSFT.O), opens new tab and AI startup Anthropic to stay ahead of rivals in a highly competitive industry. "By acquiring Astreya and its proprietary AI tooling and production-grade infrastructure platform, which is complementary to Cognizant's AI builder stack, we will be even better-positioned to help clients architect their platform-led AI systems and operationalise them ⁠at scale," Chief Executive Ravi Kumar S said. The Astreya deal builds on a recent run of acquisitions aimed at strengthening Cognizant's AI business. The company bought tech consulting firm 3Cloud in January to expand its Microsoft Azure capabilities and acquired digital ⁠engineering firm Belcan in 2024 for nearly $1.3 billion. Founded in 2001, Astreya has spent nearly a decade managing data center infrastructure, AI lab environments and enterprise networks for ⁠six of the so-called Magnificent Seven tech firms. Cognizant, valued at $26 billion, has lost more than a third of its market value this year, ⁠weighed down by a weak demand outlook for IT services and AI-driven deflation fears. Reporting by Milana Vinn in New York, Natalia Bueno Rebolledo in Mexico City; Writing by Chris Thomas; Editing by Sumana Nandy Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence * Mergers & Acquisitions Milana Vinn Thomson Reuters Milana Vinn reports on technology, media, and telecom (TMT) mergers and acquisitions. Her content usually appears in the markets and deals sections of the website. Milana previously worked at GLG and PE Hub, where she spent several years covering TMT deals in private equity. She graduated from CUNY Graduate School of Journalism with Masters in Business Journalism.

Cognizant buys Astreya for $600m in its fourth major acquisition

The deal, Cognizant's fourth major acquisition in 18 months, is designed to plug a specific gap in its AI builder strategy: the ability to design, build, and run the physical data centre infrastructure that enterprise AI actually runs on. Cognizant has agreed to acquire Astreya, a San Jose-based IT managed services firm specialising in AI infrastructure and data centre operations, for approximately $600 million, the company confirmed to Reuters. The deal is expected to close in the second quarter of 2026, pending regulatory approvals. The acquisition is the most operationally specific move yet in Cognizant's AI pivot under CEO Ravi Kumar S, who took the role in January 2023 and has spent the intervening period reshaping the company around what he calls an 'AI builder strategy': helping enterprise clients not merely adopt AI tools but architect, deploy, and scale production-grade AI systems. "By acquiring Astreya and its proprietary AI tooling and production-grade infrastructure platform, which is complementary to Cognizant's AI builder stack, we will be even better-positioned to help clients architect their platform-led AI systems and operationalise them at scale," Kumar said. Founded in 2001 in Silicon Valley, Astreya has spent two decades building operational expertise in exactly the unglamorous layer of enterprise IT that most AI coverage ignores: the physical and logical infrastructure that connects AI compute to the businesses that use it. The company employs more than 2,200 IT professionals across 33 countries, with a particular concentration in data centre management, network operations, cloud infrastructure, and digital workplace services for large enterprises. Its customer base skews heavily towards technology companies, the same hyperscalers and enterprise tech firms whose AI ambitions are driving the current wave of infrastructure investment. Its service offering spans network and data centre management with 24/7 monitoring, IT asset lifecycle management, cloud infrastructure services including migration and optimisation, and AI-driven automation tooling it describes as 'AI-first' managed services. The company has been building proprietary AI agents and automation frameworks on top of its managed services, positioning itself not merely as a labour-arbitrage outsourcer but as a technology platform for infrastructure operations. Revenue figures for Astreya vary across sources, as the company is privately held and does not publish audited financials. ZoomInfo and RocketReach both cite a figure of approximately $560 million in annual revenues, which would make the $600 million acquisition price a modest premium to trailing revenue, reflecting the value Cognizant is placing on Astreya's proprietary tooling and its customer relationships rather than simply its headcount. The Astreya acquisition continues an acquisition cadence that Kumar has maintained with unusual consistency since taking the helm. In 2024, Cognizant acquired Thirdera, a ServiceNow specialist, for $430 million, and Belcan, a digital engineering firm focused on aerospace and defence, for approximately $1.3 billion, its largest deal in years. In November 2025, it announced the acquisition of 3Cloud, one of the largest independent Microsoft Azure services providers, in a deal that would add more than 1,000 Azure engineers and 1,500 Microsoft certifications to Cognizant's bench. Financial terms for 3Cloud were not disclosed. Each acquisition maps to a specific gap in Cognizant's AI builder stack. Thirdera deepened its ServiceNow workflow automation practice. Belcan brought engineering R&D capabilities for complex physical systems. 3Cloud extended its Microsoft Azure and AI deployment bench. Astreya fills the infrastructure operations layer: the ability to design, build, and run the data centre and network fabric that production AI systems require. The pattern reflects a deliberate attempt to move Cognizant away from the commoditised labour arbitrage model that has characterised Indian IT outsourcing for two decades, and towards a higher-margin, IP-enriched services model. Cognizant was named as one of OpenAI's first two Codex enterprise partners in April 2026, embedding the AI coding agent across its global delivery workforce of roughly 350,000 associates. The company has also embedded Claude across its entire workforce through Anthropic's Claude Partner Network, making it one of the most AI-embedded large IT services firms by headcount. The strategic rationale for the Astreya deal is rooted in a specific problem that large enterprise AI deployments consistently run into: the gap between a working AI model and a running AI system at scale. Building a model, or licensing one, is now relatively straightforward for a large organisation. Running it reliably in production, managing the data centre connectivity, network latency, hardware provisioning, monitoring, and operational automation required to deliver consistent performance, is considerably harder, and considerably more expensive to staff organically. That gap is where Astreya has operated for two decades. Its clients include some of the world's largest technology companies, and it has been building automation and AI-agent tooling on top of its managed services infrastructure at a moment when demand for exactly that capability is accelerating. Cognizant's Q3 2025 revenues reached $5.4 billion, up 7.4% year on year, with its Products & Resources segment, boosted significantly by Belcan, growing at 12.6%. The company has guided for continued revenue acceleration into 2026, and the Astreya deal strengthens the infrastructure services revenue line that underpins that guidance. For the broader IT services market, the deal is a signal of where the battleground has shifted. Accenture, Infosys, TCS, and Wipro are all pursuing variations of the same strategy: acquiring specialised capability to move up the AI value chain before the window closes. The race is not simply for AI talent, it is for the operational infrastructure expertise and proprietary tooling that turns AI from a pilot into a production system. Astreya, at $600 million, is Cognizant's bet that it can own that layer.

Cognizant to acquire Astreya for $600M to deepen AI infrastructure services - SiliconANGLE

Cognizant to acquire Astreya for $600M to deepen AI infrastructure services Information technology services company Cognizant Technology Solutions Corp. today announced it agreed to acquire Astreya Inc., a San Jose-based information technology managed services firm specializing in artificial intelligence infrastructure and data center operations. The deal is worth about $600 million, the company confirmed to Reuters, and is expected to strengthen Cognizant's AI portfolio. Founded in 1994, Cognizant describes itself as a professional services outfit that helps clients modernize technology and transform their experiences. In practical terms, that means the company works from inside enterprises to rebuild processes and technology foundations. In the AI era, that increasingly means reconstructing engineering around the infrastructure of intelligent machines, agents and the automation they bring. Astreya operates in more than 35 countries and brings more than 25 years of managed services experience with some of the world's largest companies. Its capabilities include enterprise-managed services at scale, a proprietary AI OpsHub platform with modules for readiness assessment, signal intelligence, analytics and agentic automation, and a Tech Innovation Office that Cognizant said will deepen its AI offerings. "By acquiring Astreya and its proprietary AI tooling and production-grade infrastructure platform, which is complementary to Cognizant's AI builder stack, we will be even better-positioned to help clients architect their platform-led AI systems and operationalize them at scale," Cognizant Chief Executive Ravi Kumar S. said. Cognizant's current trajectory is to become a consulting and services firm that helps enterprises scale their AI. As the company puts it, it wants to become an "AI builder." This acquisition continues that push. In February 2024, Cognizant introduced Flowsource, giving it a platform for generative AI-assisted software engineering. Then, in October 2024, the company enhanced Neuro AI, moving beyond coding and into multi-agent systems and practical AI deployments. In 2025, Cognizant announced a deal to acquire 3Cloud, a major Microsoft Azure services provider, which closed Jan. 1, 2026. That deal added almost 1,200 employees with cloud expertise, building on Cognizant's Azure, AI and app-innovation transformation capabilities. "Astreya has redefined what it means to be a trusted partner in the AI era, embedding intelligence into every solution, without losing the human connection that drives real results," Astreya President and CEO Romil Bahl said. "Joining Cognizant is the natural next chapter for the Astreya global team and, importantly, the clients who have trusted us to operate their most critical technology environments." For Cognizant's existing clients, the acquisition will provide access to new capabilities, including accelerators, platform intellectual property and hyperscaler-hardened talent that can be deployed immediately. For Astreya's existing clients, Cognizant's global scale will become available, expanding service capacity and providing access to emerging enterprise AIOps capabilities. The acquisition is expected to close in the second quarter of 2026, subject to regulatory approvals and other customary closing conditions.

Cognizant to buy Astreya for about $600 million

Cognizant Technology is set to acquire Astreya for approximately $600 million. The deal, expected to conclude in the second quarter of 2026, will bolster the company's offerings as businesses increasingly invest in AI technologies. Cognizant Technology has agreed to buy Astreya, an IT services and technology provider focused on AI infrastructure and data center services, in a deal valued at around $600 million, the company told Reuters. The deal is expected to strengthen Cognizant's AI infrastructure capabilities, as ⁠companies ramp ⁠up spending on the technology that is reshaping industries. The deal, expected to close in the second quarter of 2026 pending regulatory approvals, is likely to be announced on Wednesday. Cognizant has benefited from enterprise clients accelerating AI integration and automation as they migrate workloads to the cloud. The company has expanded partnerships with Microsoft and ⁠AI startup Anthropic to stay ahead of rivals in a highly competitive industry. "By acquiring Astreya and its proprietary AI tooling ⁠and production-grade infrastructure platform, which is complementary to Cognizant's AI builder stack, we will be even better-positioned to help clients architect their platform-led AI systems and operationalise them at scale," chief executive Ravi Kumar S said. The Astreya deal builds on a recent run of acquisitions aimed at strengthening Cognizant's AI business. The company bought tech consulting firm 3Cloud in January to expand its Microsoft Azure capabilities and acquired digital engineering firm Belcan in 2024 for nearly $1.3 billion. Founded in 2001, Astreya has spent ⁠nearly a decade managing data center infrastructure, AI lab environments and enterprise networks for six of the so-called Magnificent Seven tech firms. Cognizant, valued at $26 billion, has lost more than a third of its market value this year, weighed down by a weak demand outlook for IT services and AI-driven deflation fears.

Cognizant to buy Astreya for about $600 million

April 29 (Reuters) - Cognizant Technology has agreed to buy Astreya, an IT services and technology provider focused on AI infrastructure and data center services, in a deal valued at around $600 million, the company told Reuters. The deal is expected to strengthen Cognizant's AI infrastructure capabilities, as companies ramp up spending on the technology that is reshaping industries. The deal, expected to close in the second quarter of 2026 pending regulatory approvals, is likely to be announced on Wednesday. Cognizant has benefited from enterprise clients accelerating AI integration and automation as they migrate workloads to the cloud. The company has expanded partnerships with Microsoft and AI startup Anthropic to stay ahead of rivals in a highly competitive industry. "By acquiring Astreya and its proprietary AI tooling and production-grade infrastructure platform, which is complementary to Cognizant's AI builder stack, we will be even better-positioned to help clients architect their platform-led AI systems and operationalise them at scale," Chief Executive Ravi Kumar S said. The Astreya deal builds on a recent run of acquisitions aimed at strengthening Cognizant's AI business. The company bought tech consulting firm 3Cloud in January to expand its Microsoft Azure capabilities and acquired digital engineering firm Belcan in 2024 for nearly $1.3 billion. Founded in 2001, Astreya has spent nearly a decade managing data center infrastructure, AI lab environments and enterprise networks for six of the so-called Magnificent Seven tech firms. Cognizant, valued at $26 billion, has lost more than a third of its market value this year, weighed down by a weak demand outlook for IT services and AI-driven deflation fears. (Reporting by Milana Vinn in New York, Natalia Bueno Rebolledo in Mexico City; Writing by Chris Thomas; Editing by Sumana Nandy)