The newly combined entity is expected to strengthen Cognizant’s strategic partnership with Microsoft. Credit: JHVEPhoto/Shutterstock.com.
Cognizant has finalised its acquisition of 3Cloud, a Microsoft Azure services provider based in Chicago, US, effective on 1 January 2026.
The transaction, first announced in November 2025, will see around 1,200 employees, including roughly 700 based in the US, join Cognizant’s global workforce.
With this deal, Cognizant aims to expand its capabilities in Azure, data and AI, as well as cloud-based application innovation for clients across multiple sectors.
The addition of 3Cloud increases Cognizant’s roster of Azure-certified professionals to more than 21,000 worldwide.
Both companies have extensive experience in engineering-centric cloud projects.
The newly combined entity is expected to strengthen Cognizant’s strategic partnership with Microsoft and further develop its enterprise-scale digital and AI transformation offerings.
Gryphon Investors completed the sale of 3Cloud to Cognizant following several years of investment that saw the company’s scale increase significantly, in part through average annual organic growth of more than 20% since 2020.
Under Gryphon’s ownership since June 2020, 3Cloud also undertook several add-on acquisitions.
Financial details of the acquisition remain undisclosed.
Cognizant CEO Ravi Kumar S said: “The addition of 3Cloud’s capabilities and skilled professionals is an important step along our path to becoming the premier AI builder for the enterprise.
“By combining 3Cloud’s Azure, data and AI expertise with Cognizant’s global scale and industry depth, we are creating a powerful platform for innovation, helping clients harness the full potential of AI and cloud to transform their businesses.”
Founded in 2016 by former Microsoft executives, 3Cloud covers areas such as modern data engineering, AI-driven application development, analytics and managed services.
The company serves enterprise clients in sectors including banking, healthcare, technology and consumer industries.
It is also an Elite Databricks partner and has received industry recognition for its delivery model and technical expertise.
The integration of 3Cloud is intended to broaden Cognizant’s portfolio of Azure-related services as organisations increasely demand AI-led business transformation using Microsoft Azure platforms.
According to Microsoft’s reports for the third quarter of 2025, Azure and related cloud services experienced a year-on-year growth rate of 40%.
Gryphon Investors received advisory support from Lazard and legal counsel from Kirkland & Ellis on the deal, while Mayer Brown acted as legal adviser to Cognizant.
By: Anwesha Pattanaik
Originally published at: Verdict
