Why Cognizant wants to buy IT managed services and solutions company Astreya

Following the completion of the acquisition of 3Cloud, one of the largest independent Microsoft Azure services providers earlier this year, Teaneck-headquartered Cognizant Technology Solutions is now looking to acquire San Jose-headquartered Astreya to boost its AI builder strategy. The 25-year-old company is an AI-led IT managed services and solutions provider and has outcome-based managed services relationships with six of the seven largest hyperscalers. The acquisition is expected to close in the second quarter of 2026.

On the back of trillions of dollars being poured into AI data center infrastructure buildout, Cognizant CEO Ravi Kumar S said in a statement, “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 better positioned to help clients architect platform-led AI systems and operationalize them at scale.”

In its disclosure to the Securities and Exchange Commission, Cognizant said it expects a cash payout of approximately $600 million upon deal closure, along with a contingent earn-out.

With Astreya’s proprietary AI OpsHub platform, which sits on top of operational tools such as ServiceNow, BMC, Jira, BigPanda and Splunk, Cognizant expects this to strengthen its ‘production-grade AI delivery capabilities’ and provide access to the full value chain of AI infrastructure. As hyperscalers commit to more spending on data centers, “Effective and credible scaling of AI infrastructure, including data centers, requires deep context and AI builder expertise. We expect the acquisition of Astreya will meaningfully expand Cognizant’s AI infrastructure capabilities and enhance our powerful ‘Magnificent Seven’ hyperscaler relationships,” said Surya Gummadi, President of Cognizant Americas.

In its filing to the SEC, Cognizant said it expects clients to continue to focus on AI transformation, with demand for services and solutions that deliver productivity and cost savings expected to continue. “AI technologies and services are part of a highly competitive and rapidly evolving market. We plan to continue to make significant investments in our AI capabilities to meet the needs of our clients and harness AI’s value in a flexible, secure, scalable and responsible way. As AI-based technologies or other forms of automation evolve, demand for some services that we currently perform for our clients may be reduced, and our ability to obtain favorable pricing or other terms for some of our services may be diminished,” Cognizant said, laying out the business outlook in its filing.