TEANECK, USA: Global IT, consulting and BPO firm Cognizant today announced a definitive agreement to acquire UBS India Service Centre Private Limited (UBS ISC), the Hyderabad, India-based captive service provider to the UBS Group.

The deal is for about $75 million, said Reuters report. Cognizant expects to receive about $442 million of revenue under a services agreement with UBS AG during 5-year term.

As part of the transaction, UBS and Cognizant have entered into a multi-year services agreement under which Cognizant will provide a range of business process outsourcing (BPO), knowledge process outsourcing (KPO), IT, and remote infrastructure management services to UBS divisions around the globe to enable them to reduce time-to-market, expand service delivery, and enhance productivity, operational efficiency, and quality, said a press release.

The UBS ISC currently employs approximately 2,000 associates and the present acquisition is expected to help Cognizant strengthen its business and knowledge process capabilities, deepen its financial services domain knowledge, and enhance its capabilities to provide integrated services across consulting, technology, and outsourcing, the release added.

“We welcome the highly talented and experienced professionals of UBS ISC to Cognizant. This acquisition deepens our relationship with UBS and extends our leadership position in financial services,” said Francisco D'Souza, president and CEO, Cognizant.

“Cognizant's broad banking and financial services expertise and its cultural fit with UBS complement the competencies provided by the India Service Center today, while providing technology capabilities that expand the services we can buy from India and support our cost savings, efficiency and flexibility objectives," said Ulrich Korner, Group Chief Operating Officer of UBS AG.

The transaction is expected to close around the end of 2009.