Cognizant to Digitize Klöckner & Co's IT Operations Across Europe for Improved Service, Efficiencies and Lower Costs
DUISBURG, Germany, Dec. 1, 2016 /PRNewswire/ -- Cognizant (NASDAQ: CTSH) today announced that it has been selected by German-based Klöckner & Co (ETR: KCO), one of the world's largest producer-independent distributors of steel and metal products, as a strategic partner for IT services to support Klöckner & Co's IT strategy and digitization of operations across Europe.
Under a multi-year, multi-million dollar agreement, Cognizant will consolidate and manage Klöckner & Co's IT services as part of the company's enterprise-wide strategy. By using flexible contracting models—including catalogue-based pricing and managed services—Klöckner & Co will achieve cost efficiencies while extending the overall agility and scalability of its technology backbone.
To retain the domain knowledge, business culture and systems know-how of Klöckner & Co, Cognizant has acquired KIS Information Services (KIS), Klöckner & Co's technology services provider, and brought on board KIS' approximately 100 employees. KIS has deep expertise in business processes pertaining to multi-metal distribution and logistics, in addition to technologies such as SAP HANA and cloud services. This will help Cognizant broaden and deepen its technology portfolio, strengthen its industry sector expertise, and expand its network of local delivery centers across Germany, Switzerland, France and the United Kingdom.
"We needed a strategic partner with proven expertise in IT consolidation, global scale, and the ability to deliver the robust capabilities required to foster our digital transformation goals," said Marcus A. Ketter, Chief Financial Officer, Klöckner & Co. "With Cognizant's deep expertise in developing and implementing next-generation IT solutions, we are confident we have chosen the ideal partner."
"We are pleased to be working with Klöckner & Co to support its digital agenda across its European operations, unlocking greater operational efficiencies, and providing an integrated backbone for future digital innovation," said Santosh Thomas, President, Global Growth Markets, Cognizant. "We look forward to welcoming the KIS employees to Cognizant. Their expertise in SAP HANA and cloud services establishes a strong regional hub for us in Germany's industrial corridor with these services, and will contribute to our success as Cognizant expands our services portfolio for manufacturing and logistics clients across Europe."
About Klöckner & Co
Klöckner & Co is one of the largest producer-independent distributors of steel and metal products and one of the leading steel service center companies worldwide. Based on its distribution and service network of around 200 locations in 14 countries, the Group supplies around 140,000 customers. In addition to companies in the construction industry as well as machinery and mechanical engineering, Klöckner & Co serves customers in the automotive and chemical industry, in shipbuilding and in fields of household appliances, consumer goods and energy. Currently Klöckner & Co has around 9,100 employees. The Group had sales of around €6.4 billion in fiscal 2015.
The shares of Klöckner & Co SE are admitted to trading on the regulated market segment (Regulierter Markt) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) with further post-admission obligations (Prime Standard). Klöckner & Co shares are listed in the SDAX-Index of Deutsche Börse.
Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process services, dedicated to helping the world's leading companies build stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 100 development and delivery centers worldwide and approximately 255,800 employees as of September 30, 2016, Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.
This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, our expectations regarding the agreement with Klöckner & Co and the acquisition of KIS Information Services, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions and the factors 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.
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