Cognizant Buys Business Systems Consulting Firm

Cognizant Technology Solutions, a Teaneck, N.J.-based provider of offshore application development and maintenance services, says it has acquired business-technology consulting firm Fathom Solutions LLC for $19 million in cash and stock.

Fathom Solutions, based in Chicago, was founded in 1999 by several former Accenture executives. The privately held company focuses on developing and implementing business systems for companies in a number of vertical industries, including telecommunications and financial services. Its customers include Allstate Corp., Cox Communications, and TransUnion.

Cognizant officials say the acquisition will bolster the company's ability to provide on-site consulting services to customers in the U.S., supported by application development work in low-cost countries like India.