Cognizant (CTSH) has entered into an agreement to acquire Microsoft (MSFT) Azure partner 3Cloud to enhance its position in helping enterprises achieve artificial intelligence readiness, the IT company announced today.
Financial details of the transaction were not disclosed, but the deal is expected to close during the first quarter of 2026.
3Cloud serves an enterprise client base across the financial, healthcare, technology and consumer markets. For the past five years, 3Cloud has delivered 20% organic compound annual growth, with 20%-plus growth expected in 2025, driven by demand for Microsoft Azure-powered business transformation.
“3Cloud’s deep Azure expertise, industry-aligned approach and longstanding Microsoft partnership will enable us to deliver even greater value to our clients as they accelerate their AI journeys,” said Cognizant CEO Ravi Kumar S.
Cognizant shares were up 0.5% by noon trading on Thursday.
Upon closing of the acquisition, 3Cloud will add more than 1,000 Azure experts and engineers and about 1,500 Microsoft certifications to Cognizant’s capabilities. 3Cloud’s nearly 1,200 employees, including approximately 700 in the U.S., will also join Cognizant’s nearly 20,000 Azure-certified associates globally.
“Microsoft Azure is the platform of choice for AI transformation, and Cognizant’s acquisition of 3Cloud will create one of the most capable and credentialed partners in the Azure ecosystem,” said Judson Althoff, CEO of Microsoft’s Commercial Business.
Founded in 2026, 3Cloud is headquarted in Chicago. The company offers comprehensive solutions that help customers optimize business outcomes within Microsoft Azure. The company is being sold by Gryphon Investors.